Simple financial feasiblity front door analysis

  1. site acquisition costs + construction cost =
    Total expected development cost
  2. Total expected development cost x loan to value ratio =
    Permanent mortgage
  3. Permanent mortgage x annualized mortgage constant =
    Cash required for debt service
  4. Cash require for debt service x lender required debt service coverage ratio =
    Required net operating income or NOI
  5. Required net operating income or NOI + estimated operating expenses (not pass through to tenants) =
    Require effective gross income
  6. Require effective gross income / expected occupancy rate=
    Required gross revenue
  7. Required gross revenue / leasable square feet =
    Rent required per square foot
Author
Anonymous
ID
319456
Card Set
Simple financial feasiblity front door analysis
Description
SFFA cards
Updated