I just went through your tutorial on the latest model and want to know how to handle if I own the land. How would you handle that? Also, any idea how to account for land value as collateral in the LTV calculation?
Regardless of whether you own the land or not, you’ll want to apply some value to the land in your budget calculation. Then when you’re looking at your required equity contribution, the attributed value of the land can be deducted from the equity required to understand your cash requirement.
And the same goes for LTC calculation. The value of the land is the value (unless the lender requires you to contribute the land at your cost).
