Understanding LTV

To invest in a Tenant in common you need to match the LTV of the property you are selling to the property that you are buying. Well that is not entirely true. You can always go up in LTV, as long as you are replacing all of the debt from the property you are selling.

So....


Example time:

Property Sells:

Debt $300,000
Equity $200,000


You need to replace both the debt and equity here, so you can invest in something with.

$200,000 in equity and a loan of $300,000 or greater.


Not a super example, but it gets to the point.