Posted by wes on March 30, 2005 at 13:11:59:
Yes I am a broker and have been for years. I prefer the option of being able to offer my client what they “need” as opposed to what I have to “offer” (if I worked for a specific lender).
I do not know of a set ratio, and this is just my basic formula, but if someone comes to me and does not know the expenses of a property, I usually estimate (perhaps on the high side) and deduct 15% for management and vacancy, then 30% in additional expenses. That leaves an estimate of 55% of gross revenue as NOI.
Your example of 47% just makes me wonder where the additional expenses are appearing. But then I do not recall you mentioning the occupancy of this property and that might be the answer.
For your information, the “best” loan programs will require an occupancy of 90%.
Need 95% LTV - Is this really out their? - Posted by Alan
Posted by Alan on March 29, 2005 at 14:04:05:
If their are any brokers or Banks who can provide this, please respond. I have a 44 unit fully occupied. Asking price is 1,500,000. NOI before debt service is 125,000 Revenue is 267,000. The building is in excellent cond. Please send interest rate and terms. Also send max amount you can lend.
Re: Need 95% LTV - Is this really out their? - Posted by Dan Redlinger
Posted by Dan Redlinger on March 29, 2005 at 22:18:54:
You will need 10% of your own on this one. If it is that good of a project. Try and find a partner. Good luck.
Re: Need 95% LTV - Is this really out their? - Posted by wes
Posted by wes on March 29, 2005 at 17:19:00:
Probably not for that loan amount.
If it were, you would still need an interest rate of 6.15% or less and a 30 year amortization to keep your DSCR @ 1.2 or less. Since Prime Rate is now 5.75%, I
do not see that happening.
However, regarding Debt Service: $125,000 NOI on $267,000 Revenue seems to me a little lower than normal (47%). Why?
Re: Need 95% LTV - Is this really out their? - Posted by Alan
Posted by Alan on March 30, 2005 at 08:25:34:
What should the rate be for debt service 47% is what it is now. What should it be? The 1.5Mill is an asking price. Are you a broker? The property is in NY