A real estate agent has recently acquired an unfinished deal from his partner in his firm and wants to see if it's worth following through on it. The information on the deal state the following:

Property: 14,000 square feet Property Bought: $3,250,000 Construction cost is $155 per square foot. Property Tax rate is 15%. Broker commission/fee is 5%. Transfer Tax Rate is 1.5%. LTV is 75%. 30 Year mortgage at 3.5% with monthly payments. Interest only loan at 5.5%.

The real estate agents wants to know the construction loan interest is and what the broker commission/fee will amount to so he can see if the project will be profitable. 

What is the construction loan interest? What is the broker commission/fee in dollar amount?

 

Answer rating: 100% (QA)

To calculate the construction loan interest we need to multiply the ... View the full answer