These fictional scenarios explain the questions behind a financing review. They are not completed River Bear transactions, loan offers, or forecasts.
EXAMPLE 01 · PURCHASE
A $2 million property
Assumed price and value
$2,000,000
Assumed loan
$1,300,000
Equity toward price
$700,000
Illustrative LTV
65%
Annual NOI assumption
$180,000
Annual debt service assumption
$120,000
Illustrative DSCR
1.50×
The assumed NOI exceeds debt service by $60,000 annually. That is not a guaranteed return or distributable profit; additional capital costs, reserves, taxes, and other obligations may apply.
The $700,000 excludes fees, closing costs, reserves, repairs, and other required cash. Debt service is an input assumption, not a quoted rate or payment.
EXAMPLE 02 · REFINANCE
Equity is only the starting point.
Assumed property value
$3,000,000
Assumed new loan
$1,950,000
Existing debt payoff assumption
$1,600,000
Illustrative LTV
65%
Difference before costs
$350,000
The $350,000 is a gross difference, not cash promised to the borrower. Costs, prepayment charges, escrows, reserves, other liens, and lender limits could reduce or eliminate proceeds.
A lender still needs to assess cash flow and the full transaction. An acceptable LTV alone does not establish eligibility.
EXPLORE YOUR ASSUMPTIONS
A quick property worksheet.
Use estimates to see how the relationships change. No data is saved or sent.
LTV = loan ÷ property value. DSCR = annual NOI ÷ annual debt service. Use the same annual period for income and debt. This simplified worksheet excludes additional liens and lender-specific adjustments. Negative NOI produces negative coverage; a zero or negative debt-service input is not a meaningful DSCR.
