Loan Sec Valuation

Question 1

What are the unique elements of loan sec valuation compared to normal valuation?

Answer 1

1. SWOTs
2. Statement of whether or not it is suitable for loan security.
3. special assumptions

Question 2

What factors can influence a lender’s ability to advance a loan using the borrower’s property?

Answer 2

1. Supply and demand for the type of property
2. Tenants covenant strength
3. Property’s quality and physical condition

Question 3

What advice is provided to the lender?

Answer 3

1. MV
2. VP value
3. SWOT analysis
4. Whether the property is suitable for loan sec purposes

Question 4

What must you undertake a CoI on?

Answer 4

1. The property
2. The property owner
3. The lender