Question on how to calculate equity

[Kenrick Lumenier]

Hi fellow BP family,

I have a question & has been confusing me.

Im doing soon a apartment complex and the construction will be 550.000.00, the property land is valued at 220.000.00.

Borrowed will be 550.000.00

The building will be have a market value of 752.000.00 + 220.000.00= 972.000.00.

I was wondering how do you calculate the equity that I can borrow again once I'm done with this project.

I always was thinking it was asset-liabilities then you take 80% of that , which is the amount you can use again.

Or is it 80% of the building market value?

I saw 2 different ways of calculating it.