Loan-to-value ratio is the amount a lender is willing to invest compared to the value of the property. Because most debt lenders will not offer a loan that is greater than 80% LTV, many borrowers turn toward preferred and common equity for greater leverage. Preferred equity will usually go from 85% to 90% of LTV. They may factor budgeted renovation costs into the value, or determine it using an LTC (loan to cost) calculation, which further can increase leverage.