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 commonly used as a basis for a participation loan, as it represents the maximum possible income that the property can generate. The other options (increase in value over the holding period, NOI in excess of a base amount, and cash flow after regular debt service) are all commonly used as bases for participation loans.

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