Real Estate Investing, Loan to Value and Loan to Cost workout. Calculate the loan to value and loan to cost of the following property: we have a building value and then we also have some additional costs that may or may not need to be spent. The first thing we're gonna look at is simply the loan to value, which is to say what is the loan amount over the building value and that's C8/ C5.

To do the LTC, what we're going to assume here is that in order for this building to actually start generating revenue, we're going to have these other costs that need to be considered. First of all, our closing costs, which would really be part of any loan. But if they're significant and, if it's a a cash-strapped deal, that might become a bigger part of the issue for the purchaser. And then there might be construction costs which are also needed to be spent in order to get the building generating revenue. So we will take the loan amount over the sum of the building, the closing costs and the construction costs and we have a loan to cost of 62.7.