Enter your purchase price and property value to check your loan-to-value ratio and get a plain-English safety rating.
LTV (Loan-to-Value) is the single most important safety metric in note investing. It tells you how much of the property's value is covered by the debt — and how much cushion you have if things go wrong.
| LTV Range | Safety Rating | What It Means |
|---|---|---|
| Under 65% | Strong | Excellent cushion. Property can drop significantly and you're still protected. |
| 65% – 75% | Good | Solid protection. This is the standard range most note investors target. |
| 75% – 85% | Caution | Thin cushion. A modest drop in property value puts your principal at risk. |
| Over 85% | Risky | Very little equity. Any decline in property value could mean a loss. |
This calculator shows your LTV based on what you pay — not the UPB. Since you're buying at a discount, your LTV will always be lower than the borrower's original LTV, which is one of the key advantages of buying discounted notes.