**SOURCES OF FUNDS**Note: to learn how to size debt, see here

**Note: to learn how to change the equity structure, see here**

**Debt box****Interest Rate =**Annual nominal interest rate for the loan. Changing the input here will override the Interest Rate input on the Dashboard, and vice versa.

**Loan Size at funding / Total Unleveraged Uses of Funds**

Loan to Value Percentage =

Loan to Value Percentage =

**Total Unleveraged Uses of Funds =**total acquisition costs

**cluding any Loan Fee**

__ex__**Amortizing =**whether cumulative debt service payments include repayment of loan principal or not

**maximum allowable length of loan from funding to final repayment**

Term =

Term =

**Amortization Term =**assuming it is an amortizing loan, the period over which the loan principal is repaid

**Interest-only Period =**assuming it is an amortizing loan, the period over which the loan principal is repaid

**Fees =**cash payment made to the lender at loan closing to refund their underwriting costs and unlock the loan proceeds

**Year 1 Debt Yield =**Year 1 NOI / Loan Principal Amount at funding

**Year 1 DSCR =**Year 1 Debt Service Coverage Ratio (Year 1 NOI / Year 1 Debt Service payment) if Year 1 is amortizing, and if Year 1 is Interest-only

__Loan To Value Test Section__

**Annual NOI =**Year 1 NOI

**Capitalization Rate =**the Year 1 Cap Rate

**Gross Valuation =**Annual NOI / Capitalization Rate

**Maximum Loan to Value =**maximum likely loan to value transaction could achieve

**Maximum Loan Proceeds =**Gross Valuation * Maximum Loan to Value

Debt Service Coverage Ratio Test Section

Debt Service Coverage Ratio Test Section

**Annual NOI =**Year 1 NOI

**Minimum Debt Service Coverage Ratio =**likely minimum required DSCR by lender for this transaction

**Maximum Allowable Debt Service =**Annual NOI / Minimum Debt Service Coverage Ratio

**Maximum Loan Proceeds =**present value of loan given Maximum Allowable Debt Service (paid monthly) and given loan amortization characteristics

**Equity Players box**

**Residual equity requirement =**Total equity needed for the transaction including for any deficit amounts

**Sponsor / Third Party Investor Partnership box**

**Preferred return (Pro-Rata) =**Monthly compounding, cumulative preferred return paid to both Sponsor and Third Party Investor, parri passu (simultaneously, and pro-rata), after which invested capital will be returned

**Residual Cash Flow Splitting =**After any preferred return is paid, and after capital is returned, the method by which remaining profit cash flows are partitioned: either a

**Single Residual Split**(such as 50/50), or a

**Multi-Tier Waterfall**(such as 80/20 up to a 15% Third Party Investor IRR, then 70/30 up to a 20% Third Party Investor IRR, then 60/40 thereafter)

**Tier =**a range of investment performance, as measured by the Third Party Investor's IRR

**Sponsor / Third Party Investor Partnership Cash Flow Splits box**

**Sponsor equity =**Sponsor share of cash flows related to their cash equity investment in the transaction at all tiers (remains constant)

**Sponsor promote =**Sponsor share of cash flows related to their promoted interest (aka carried interest) that is above and beyond the share of cash flows related to the Sponsor equity (likely grows from tier to tier, and is 0% by definition for the first tier if that tier is the Preferred return)

**Third Party Investor equity =**Third Party Investor share of cash flows at each tier (will decrease from their share of investment by the Sponsor promote amount in each tier)

Sponsor / Equity Partner Partnership box

Sponsor / Equity Partner Partnership box

**Preferred return (Pro-Rata) =**Monthly compounding, cumulative preferred return paid to both Sponsor and Equity Partner, parri passu (simultaneously, and pro-rata), after which invested capital will be returned

**Residual Cash Flow Splitting =**After any preferred return is paid, and after capital is returned, the method by which remaining profit cash flows are partitioned: either a

**Single Residual Split**(such as 50/50), or a

**Multi-Tier Waterfall**(such as 80/20 up to a 15% Equity Partner IRR, then 70/30 up to a 20% Equity Partner Investor IRR, then 60/40 thereafter)

**Tier =**a range of investment performance, as measured by the Equity Partner's IRR

**Sponsor / Equity Partner Cash Flow Splits box**

**Sponsor equity =**

**Sponsor share of cash flows related to their cash equity investment in the transaction at all tiers (remains constant)**

**Sponsor promote =**

**Sponsor share of cash flows related to their promoted interest (aka carried interest) that is above and beyond the share of cash flows related to the Sponsor equity (likely grows from tier to tier, and is 0% by definition for the first tier if that tier is the Preferred return)**

**Equity Partner equity =**Equity Partner share of cash flows at each tier (will decrease from their share of investment by the Sponsor promote amount in each tier)

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