Which of the following would typically NOT be used as a basis for a participation loan?

Name: Which of the following would typically NOT be used as a basis for a participation loan?
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Question

Quizplus · Accepted Answer

Potential gross income is a common basis for a participation loan, as it represents the property's income-generating potential. However, an increase in value, NOI in excess of a base amount, and cash flow after regular debt service can also be used as bases for participation loans.

Which of the Following Would Typically NOT Be Used as a Basis