Does the levered IRR meet the tenant's stated required yield? Note: - This is the metric you use to answer the question, "Is it better for the tenant to lease or buy with mortgage financing? - If the levered IRR exceeds her required yield, then she is better off buying with a mortgage instead of leasing. If it less than her hurdle rate, then she should renew the lease instead of buying.
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Does the levered IRR meet the tenant's stated required yield? Note: - This is the metric you use to answer the question, "Is it better for the tenant to lease or buy with mortgage financing? - If the levered IRR exceeds her required yield, then she is better off buying with a mortgage instead of leasing. If it less than her hurdle rate, then she should renew the lease instead of buying.
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- What is a nonrecourse loan? Will a nonrecourse loan given by the seller of real estate to the buyer increase the amount the buyer has at risk? Explain.1. What are three significant differences between income property finance and owner occupied single family residential finance 2. You are considering a loan or investment in an income property. The projected DSCR is too low relative to like properties. What does that potentially tell you? 3. You are considering a loan or investment in an income property. The market Cap Rate is significantly higher than suggested by current NOI on the subject property relative to the asking price. Discuss the implications and potential causes,Borrowers should consider refinancing their existing fixed rate mortgage (FRM) loan only when the market interest rates _____; and they should refinance _____ frequently as the refinance closing costs rise. Group of answer choices increase; less increase; more decrease; less decrease; more
- I need th answer for this multiple choice question and please give a short explanation about your answer: Why an increase in the interest rate reduces residential investments?a. because mortgage becomes cheaper.b. because it negatively affects housing demand.c. because it reduces the opportunity cost of residential investments.d. because it increases the relative price of housing.Explain at least two benefits of using a real estate broker. What is private mortgage insurance? How does it work to protect a lender from risk? What are the three 'C's' of mortgage underwriting? What is one way in which each of the 'C's' is measured? What is the APR? Discuss at least two concerns that the APR does not capture the full costs of a mortgage.a wraparound loan. В. a conventional loan. C. an open-end loan. D. a growing-equity loan. 19. When a lender offers a below-market interest rate in exchange for an equity position in the property, this is called Aa shared appreciation loan. a growing-equity loan. C. an open-end loan. D. an installment loan. B. 20. The asking price of a home is less than the amount that the homeowners owe. What is a possible solu- tion for them to sell their home? A. Petition the lender to agree to a short sale B. Quickly refinance the home C. Take out a home equity loan to first loan рay off the D. Borrow from the buyers and give the buyers a 10-year promissory noteent PA) ice ons
- Which of the following is nota reason why some companies lease rather than buy? A. Leasing may allow you to borrow with little or no down payment. B. Leasing can improve the balance sheet by reducing long-term debt. C. Leasing can lower income taxes. D. Leasing transfers the title to the lessee at the beginning of the lease.Why might a borrower be willing to pay a higher price for a home with an assumable loan?Do solve all 3 parts For each of the following statements, state whether you think the statement is true, false, or uncertain; and explain your answer. Marks will be given mainly for your explanation. A low-income family with young children should always open an RESP. It is always better to select an open variable mortgage. Know your client forms accurately assess a client’s risk tolerance.
- 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 serviceHow is your borrowing power affected when you are considered a "high risk"? There is a good chance that you will receive better loan terms and low interest rates. O You might not qualify for a loan to buy a home, car, etc. O You will pay lower interest rates. O None of the above.14 If you're using a lease option and you want the tenant to lease but not exercise his or her option to buy, which of the following is a good strategy? A O Credit a low percentage of each rent payment toward the purchase price and keep the option fee low and refundable. Keep the option fee as high as you can, but let the tenant pay it off over the course of the lease by adding a little extra to each рayment. CO Offer seller financing at the end of the lease term. DO Require a long lease term, preferably at least three years.