You are considering giving a loan to a prospective commercial property investor. You are concerned about their ability to earn sufficient income on the property relative to their annual mortgage payments. Which should you look at? (a) Debt coverage ratio (b)Loan to value ratio (c)Equity to debt ratio (d) The sale price of the property in foreclosure (e) The PITI divided by the debt service

You are considering giving a loan to a prospective commercial property investor. You are concerned about their ability to earn sufficient income on the property relative to their annual mortgage payments. Which should you look at? (a) Debt coverage ratio (b)Loan to value ratio (c)Equity to debt ratio (d) The sale price of the property in foreclosure (e) The PITI divided by the debt service

Personal Finance

13th Edition

ISBN:9781337669214

Author:GARMAN

Publisher:GARMAN

Chapter16: Real Estate And High-risk Investments

Section16.2: Take Advantage Of Beneficial Tax

Problem 2CC

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