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Testimonials |
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"I just used your software to purchase a huge complex. The
sellers did not know what to say except that I must have used a
very expensive software package."
Jeffrey P.,
Clinton,
IL
"I liked your software so much that I ordered a copy for my
friend."
Chet V.,
Ozark, AL |
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Definitions
Internal Rate
of Return
Modified Internal Rate of
Return (MIRR)
Net Operating Income (NOI)
Loan to Value Ratio
(LTV)
Cash on Cash Return
Capitalization Rate
Gross Rent Multiplier
(GRM)
Debt Coverage Ratio
(DCR)
Real Estate Terms |
Loan to Value Ratio (LTV)
The Loan-to-Value Ratio is the amount of a
secured loan or mortgage divided by the fair market value of the property.
For example, if your property is worth $100,000 and you have a mortgage
balance of $50,000, the Loan-to-Value ratio on your home would be 50%. The
LVR helps you quickly determine how leveraged your property is based on the
fair market value of the property versus your cost. You can also use the
LVR to determine the amount of your equity.
If you have more than one loan secured
against your property, you need to add up the outstanding value of each loan
in order to calculate the Loan-to-Value ratio. For example, if your home is
worth $100,000 and you have a mortgage balance of $50,000, the Loan-to-Value
ratio on your home would be 50%. However, if you also have a second secured
loan on your home for $25,000, the Loan-to-Value ratio on your home would be
75% ((50,000+25,000) divided by 100,000).
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