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calculating cash flow

What Is Loan-to-Cost Ratio (LTC)?

This metric helps real estate credit investors measure the riskiness of a project.


[Updated: Apr 16, 2021 ] Jun 14, 2020 by Matthew DiLallo
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Metric Calculation Outcome
LTC ratio $800,000 / ($1,000,000 + $250,000) 64%
Post-renovation LTV ratio $800,000 / $1,350,000 59%

Source: Author's calculations.