6. Part IlI: Question #2 eview u are a Loan Officer with an Investment Bank. Today you need to set your Jending parameters. They are: DSCR: 1.25 LTV: 65% 10 Year T-Bill: .447 Rate Markup: 325 Basis Points Term: 25 Years Amortization: 25 Years A small investment company is buying an investment property. The terms are Cash Flow: $107,000 Cap Rate: 6.02% 1. What is the price? 2. What is the annual debt payment? 3. What is the mortgage constant? 4. Does the debt create positive or negative financing? 5. As a lending officer, would you do this loan? Why?
6. Part IlI: Question #2 eview u are a Loan Officer with an Investment Bank. Today you need to set your Jending parameters. They are: DSCR: 1.25 LTV: 65% 10 Year T-Bill: .447 Rate Markup: 325 Basis Points Term: 25 Years Amortization: 25 Years A small investment company is buying an investment property. The terms are Cash Flow: $107,000 Cap Rate: 6.02% 1. What is the price? 2. What is the annual debt payment? 3. What is the mortgage constant? 4. Does the debt create positive or negative financing? 5. As a lending officer, would you do this loan? Why?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:6. Part IIll: Question #2
to review
au are a Loan Officer with an Investment Bank. Today you need to set your
lending parameters. They are:
DSCR:
1.25
LTV:
65%
10 Year T-Bill:
.447
Rate Markup:
325 Basis Points
Term:
25 Years
Amortization:
25 Years
A small investment company is buying an investment property. The terms are:
Cash Flow:
$107,000
Cap Rate:
6.02%
1. What is the price?
2. What is the annual debt payment?
3. What is the mortgage constant?
4. Does the debt create positive or negative financing?
5. As a lending officer, would you do this loan? Why?
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