My understanding is that it will mainly be derived on the life tenant's age and value of the condos at the time of sale.

Originally posted by @Mark Sookram:Personally fair which derives from lack of education and encouragement are the biggest factor when it comes to making a decision where you don't have the guidance, encouragement and education.

Hi @Christopher 'Bear' DeSanctisThe debt service coverage ratio is derived from measuring the PITI (+ Association dues if applicable) versus the gross monthly rental income.

Based on Noi/Piti derived from the 30 year amortization?

@Karolina PowellHave you asked them how they derived a price?

One of my kick phrases to mentees is price is the dollars you pay, value is the benefit you derive, and cost is price x the aggravation of a missed expectation of value.  

While debt holders expect repayment of principal and interest rather than profits, the interest received can be seen as a form of profit derived from the issuer's efforts.

But, if you want to get an idea, you should find similar 5-unit sales and derive a cap rate for the market, estimate your projected NOI, and derive your estimated value range.

We can always hedge our position in stock/stock index by placing order derivatives that would limit our downside.I am quite mastering this aspect and this is what makes me more convenience for index investing (not stock but index).In syndication we're literally on the mercy of GP (which hopefully a good guy) and the actual asset itself (hopefully they purchase the right asset without so many issues).

Landlords want to keep the rent up as that is where the value of the asset is derived.