The report you receive is a very useful tool in developing the efficiency of a project, both as a loan or and investment. One of the unique methods to determine whether a project can support the loan requested (and subsequently be a satisfactory investment) is to develop its maximum loan potential through our sensitivity analysis. However, please note: your report is only as good as the information you provide. Therefore, be sure the NET OPERATING INCOME you are entering can be verified through developing a competent income/expense analysis.

Utilizing the maximum loan sensitivity analysis gives you definite information that can provide you with the basis to either go forward with your analysis, or realize quickly that the project cannot support the loan (and therefore probably the selling price - if it is a purchase) needed. The line, "Maximum Interest Rate" tells you to where the interest rate can increase and still achieve breakeven on all expenses and debt service. This is an important consideration in a volatile interest rate climate or on variable rate loans tied to a fluctuating index. This rate might be the "cap" or "ceiling" a lender would place on these type loans, however, this should be negotiated prior to approval or closing.