Underwriting Standards, Actual vs. Stabilized NOI, and Breakeven Analysis
Q: Did I miss how the debt constant was calculated?
A: No. You didn't miss it. We did not review the actual computations, which are highly complex. But keep in mind that the debt constant is a unique number for every combination of a) the interest rate, b) the amortization period, and c) the payment frequency, e.g., monthly, quarterly, annually.
The Excel model for the debt constant is online now, accessible via this link.
Course overview: Underwriting Standards, Actual vs. Stabilized NOI, and Breakeven Analysis