Which of the following typically would NOT be used as a basis for a participation loan?
A) Increase in value over the holding period
B) NOI in excess of a base amount
C) Cash Flow after regular Debt Service
D) Potential gross income

Question

Quizplus · Accepted Answer

Potential gross income is not typically used as a basis for a participation loan because it does not account for operating expenses or other deductions that affect the actual cash flow available for loan participation.

Which of the Following Typically Would NOT Be Used as a Basis