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Understanding LTC in Real Estate Financing: What Every Investor Should Know

House made out of money.

In real estate investing, Loan-to-Cost (LTC) is a ratio that defines a lender’s risk, or more specifically, the percentage of a project’s total costs that they will finance. The ratio can also reflect a real estate investor’s risk and profitability. For example, a high LTC — say 75 percent to 100 percent — allows an […]