We develop the projects Capitalization rate utilizing all three methods.

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Cash Flow Band of Investments

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Debt Coverage Method

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Mortgage Equity Method (Ellwood)

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 Cash Flow Band of Investments Method
  

Loan Amortization (mths)    300 _______
Loan interest rate               .0875 _____
Loan to value percent         .8 ________
Equity cash on cash rate     .095 ______
(optional) N.O.I.                       747564

 

Overall cap rate                .0979 (r) .0975
Using the constant            .0986572363
Estimated value                $7,633,985

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Debt Service Coverage Method
Mortgage Equity Method (Ellwood)

 

 

 

 

 

Debt Service Coverage Method
  

Loan Amort. (months)        300 _______
Loan interest rate              .0875 _____
Loan to value percent        .75 _______
Debt service coverage       1.25 ______
(optional) N.O.I.                       747564

Overall cap rate                .0925
Using the constant            .0986572363
Estimated value                $8,082,545

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Cash Flow Band of Investments
Mortgage Equity (Ellwood) Method

 

 

 

 

 

 Mortgage Equity Method (Ellwood)

Loan Amort. (months) 

Loan interest rate

Loan to value percent

Equity yield rate

Projection term (mths)

Annual appreciation %

Annual depreciation %

(optional) N.O.I.

Estimated value
300 _______

.0875 _____

.75 _______

.175 ______

60 ________

.02 _______

___________


   $747,564

$7,766,854
Constant to mtg term

Percent loan paid off

Sinking fund factor

Mtg ratio x mtg const
Eqty ratio x eqty yld rt

Total
Less equity buildup

Basic rate (r)
Less appreciation
Plus depreciation

Cap rate  

.0986572363

.0696688092

.1411634882

.0739929273
.0437500000
---------------
.1177429273
.0073760191
---------------
.1103669082
.0141163488
.0000000000
--------------
.0963 (r) .0975


Cash Flow Band of Investments
Debt Service Coverage Method

  

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