3 ms·
Here is a fun factor. A property's value is largely driven by how much rent it can bring in and its loan is based on that value. If rent goes down enough it cou
by michaelmrose 3y ago
Here is a fun factor. A property's value is largely driven by how much rent it can bring in and its loan is based on that value. If rent goes down enough it could effect the value and ultimately the loan which is premised on its value. Nobody wants to be the bank with a 5M loan on a 4M property. In fact normally they don't want to loan more than 70% of the value of the property.
https://www.c-loans.com/loan-to-value-ratio-for-commercial-loans https://www.c-loans.com/loan-to-value-ratio-for-commercial-l...