Loan-to-value (LTV) is the loan amount divided by property value, a measure of leverage and lender risk.
Lenders use LTV to control risk, and borrowers use it to understand leverage. If a property is worth $2,000,000 and the loan is $1,300,000, the LTV is 65%. Lower LTV generally means better terms, because the buyer has more equity at stake. For NNN properties, maximum LTV depends on the tenant's credit, the lease term, and the lender's guidelines. The valuation used is typically the appraised value, which may be lower than the purchase price.