For the Same Property as Above, Suppose the Underwriting Criteria

question 4

Multiple Choice

For the same property as above, suppose the underwriting criteria is a maximum loan/value ratio LTV) of 80%, and we estimate property value by direct capitalization using a rate of 8% on the stated NOI. By this criterion what is the maximum loan amount?

• A) $8,000,000
• B) $9,000,000
• C) $10,000,000
• D) $11,000,000

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Definitions:

Operant Behavior

Behavior that is controlled or influenced by its consequences, including rewards and punishments, in the context of learning.

Immediate Reinforcers

Rewards that occur directly following a behavior, increasing the chance of that behavior being repeated.

Partial Reinforcer

A reinforcement strategy in which only a portion of responses are rewarded, aimed at strengthening behavior.

Primary Reinforcer

An innately reinforcing stimulus, such as one that satisfies a biological need (e.g., food, water, shelter).