Loan to Value Ratio - Critical or Not

[Zak Thompson]

Hi BP Community,

I'm analyzing a my first CRE deal and I've built out a very dynamic model in order to run CF projections. The total build will be roughly $4 million (Equity = $900k and Debt = $3.1mil). The end goal is to sell or refi the building after 5 years for $5.1mil(what the model project based off future cash flows). However, I'm not factoring in a LTV ratio into the model. Do you think this is a critical piece to the puzzle and should I include it in the model?

Thanks in advance!