COFFEE & CAP RATES PODCAST
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The mortgage calculator considers a host of criteria including the interest rate, amortization period, cap rate, NOI, LTV, DSCR and DY to efficiently calculate a potential loan amount, payment, and total costs.

Sizing Assumptions
?Annual Fixed Interest Rate for this loan Ex: 4%
? The length of time you agree to pay back your loan.
?The period of time it takes to pay off debt with a fixed repayment schedule in regular installments. The most common mortgage terms are 25 and 30 years.
?Period where the borrower is required to pay only the interest on the loan
?Rate of return on a real estate investment property based on the income that the property is expected to generate; Varies for different properties/markets
?Annual income generated minus expenses incurred from operations
? Loan amount divided by property value - up to 80%
?Net operating income divided by mortgage payment/debt service; typical DSCR is 1.25x (certain loans can go down to 1.15x)
?NOI/Loan Amount- typical debt yield is 7-10%
?Closing costs are typically anywhere from 4-7% of the loan amount based on location, loan amount, etc.
Sizing Results
*Final Max Loan is taken from the minimum of the maximum LTV, DSCR and DY.
Underwriting
?Cash on Cash: Net Cash Flow (Net Operating Income minus Debt Service) / Equity (includes closing costs)
Amortization Schedule

The information contained herein has either been given to us by the owner of the property or obtained from sources that we deem reliable. We have no reason to doubt its accuracy but we do not guarantee the accuracy of any information provided herein. As an example, all zoning information, buildable footage estimates and indicated uses must be independently verified. Vacancy factors used herein are an arbitrary percentage used only as an example, and does not necessarily relate to actual vacancy, if any. The value of this prospective investment is dependent upon these estimates and assumptions made above, as well as the investment income, the tax bracket, and other factors which your tax advisor and/or legal counsel should evaluate. The prospective buyer should carefully verify each item of income, and all other information contained herein.