You are about to get hired to sell a building for $4,700,000 at a 3.50% cap rate
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Question:
You are about to get hired to sell a building for $4,700,000 at a 3.50% cap rate with a 5% fee and estimate 1% in additional transaction costs. The seller's original loan was $1,500,000 at a 5.00% interest rate on a 25-year amortization schedule. You are recommending the seller purchase 2 NNN properties for $4,800,000 at a 6.00% cap rate and can replace his interest rate on a 30-year amortization schedule with a new interest rate of 4.25%, keeping his original loan of $1,500,000.
What is the seller's current annual debt service? Round to nearest dollar, show as a positive number, include $ sign?
Related Book For
Money Banking and Financial Markets
ISBN: 978-0078021749
4th edition
Authors: Stephen Cecchetti, Kermit Schoenholtz
Posted Date: