An office building which generates $260,000 in Net Operating Income is advertised for sale at a price
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Question:
An office building which generates $260,000 in Net Operating Income is advertised for sale at a price of $3,250,000.
After meeting with your lender they offer agreed to originate a loan of $2,600,000 which carries a 7% interest rate and a 30-year amortization period.
Your lender confirms the annual debt service for your loan will be $209,525.
Calculate the Equity Analysis as shown in Lecture for this investment.
What does the equity analysis tell an investor?
Show your work and briefly explain your reasoning.
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
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