Write a one-page persuasive business memo to Dr. Eller in which you:
• Recommend the type of financing Wildcat Investments should use in the purchase of the
investment property;
• Comment on the Buyer and Seller closing costs to complete the transaction;
• Notify Dr. Eller of the appreciation percentage required on the investment to overcome the
transaction costs associated with the purchase (and eventual sale). Focus solely on the
Settlement Charges for this portion of the discussion

1) Use the data provided in the case description to complete the Buyer's and Sellers' Closing Statements below:
Summary of Buyers Transaction			Summary of Sellers' Transaction
Amount Due from Buyer	Cash		Amount Due to Seller	Cash
Contract Purchase Price	550,500		Contract Sale Price	550,500
Plus: Settlement Charges	7,829		Less: Property Tax Proration	950
Less: Property Tax Proration	950		Less: Payoff of Existing Loan	140,000
Less: Earnest Money	1,000		Less: Settlement Charges	34,770
Less: Mortgage Loan	440,400		Gross Amount Due to Seller	374,780
Net Amount Due from Buyer	115,979
			Seller's Share of Settlement Charges
Buyer's Share of Settlement Charges			Brokerage Commission	33,030
Items Payable in Connection with a Loan			Title Charges
Loan Origination Fee	4,404		Title Service and Title Insurance	1,690
Appraisal Fee	400		Deed Preparation	25
Homeowner's Insurance	2,000
Credit Report	25		Government Recording Charges:
			Courier Fees	25
Title Charges
Title Service and Title Insurance	800
Deed Preparation	25
Government Recording Charges:
Endorsements	150
Courier Fees	25
Total Settlement Charges	7,829		Total Settlement Charges	34,770

Answer rating: 100% (QA)

Dear Dr Eller I am writing to recommend the type of financing that Wildcat Investments should use in ... View the full answer