Loan to Value

This is the amount of a mortgage lien as a percentage of the total appraised value of a residence. If a destination club wants $750,000 for their $3,000,000 home, their LTV would be $750,000/$300,000 or 25%.

Generally speaking, the lower the LTV percentage a club operates on to acquire new luxury real estate, the more secure the members’ deposits are.

Back to the Destination Club Glossary.