Calculating Income
In calculating gross annual income, please include actual income from all sources, i.e., rent, laundry, parking, storage, CAM reimbursements, etc.
Calculating Expenses
In calculating gross annual expenses, please include the following:
- Taxes
- Insurance
- Utilities
- Maintenance/Repair
- Management
- Reserves
- Other ReccurringExpenses (misc, admin, general, etc.)
If the tenant pays for all expenses as per a triple net lease agreement, then type in “NNN” in the Annual Operating Expense column.
Expense calculations should not include:
- Annual Mortgage
- Payments and Interest
- Depreciation
- Owner Draws
- One-time capital expenses
Vacancy Rate
Please provide the vacancy rate as of the date of your loan quote request.
Questions?
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