What is Loan to Value Ratio ? [LTV Formula & Definition]
The loan to value ratio is a measurement of an investment’s risk found by dividing the loan amount by the appraised value. In this blog post, we’ll break down what the loan to value ratio is, how to calculate it, why it matters for CRE lenders, and what makes a good LTV. What Is the […]
3 Reasons to Reevaluate Your CRE Debt Origination Process
Siloed data and information often complicates the debt origination process, leaving teams to navigate challenging workflows fraught with friction and, ultimately, delaying closings. As the real estate industry undergoes a digital transformation with proptech, though, new deal management software has empowered firms to accelerate deal turnaround times and gain a competitive advantage. Rising capital costs […]
What is Debt Yield for Commercial Lenders? (Definition Explained)
It’s no secret that surging interest rates and the high cost of capital are prompting commercial real estate lenders to underwrite with caution, even as debt origination deals have become CRE’s new darling. One metric that lenders rely on to evaluate countless loan applications in their pipelines and identify risk is debt yield. While not […]
