In this video, I explain the loan to value ratio (LTV) in commercial real estate, breaking down what it is and why lenders rely on it to make financing decisions. You’ll learn how to use the LTV formula to calculate the maximum loan amount a bank will offer on a property. I also cover the relationship between LTV and risk, showing why a higher ratio means more exposure for both the lender and the borrower. Whether you’re applying for your first commercial real estate loan or refining your underwriting process, this video walks you through everything with a clear, real-world LTV example.
Chapters
0:00 – Loan to Value Ratio (LTV) Defined
1:11 – How to Find Max Loan Amount
2:00 – LTV and Risk
3:26 – LTV Example
4:11 – Wharton Real Estate Certificate
🎓 *Wharton & Wall Street Prep Real Estate Investing & Analysis:* https://ryano.finance/wharton-real-estate
*Free LTV Ratio calculator:* https://ryanoconnellfinance.com/calculators/ltv-calculator/
*Disclosure: This is not financial advice and should not be taken as such. The information contained in this video is an opinion. Some of the information could be wrong. This channel is owned and operated by Portfolio Constructs LLC. Some of the links above are affiliate links, meaning, at no additional cost to you, I will earn a commission if you click through and make a purchase.
