LTC is used to compare the cost of a commercial real estate project compared to the loan amount needed to finance it. Lenders typically look at LTC ratios when a property needs repairs, renovation, or construction. Common loan types include fix-and-flip, fix-and-hold, and construction loans. Total project costs typically include the purchase price and any hard and soft expenses associated with the project. Some examples can include materials, labor, insurance costs, county permitting fees, and inspection costs.