real estate
The purchase price of a piece of property is $70,000. After analysis of the cash flows, expected sales price, and expected yield, the investor decides the deal has a present value (PV) of $80,000. What is the net present value (NPV), and should the investor take the deal?
$10,000; Yes
An investor just purchased an office building for $100,000. He knows for certain that he can sell the building for $110,000 in 5 years.
$13,500
Given the following information on a fixed-rate loan, determine the maximum amount that the lender will be willing to provide to the borrower. Loan Term: 30 years, Monthly Payment: $800, Interest Rate: 6%.
$133,433
An investor agreed to sell a warehouse 5 years from now to the tenant who currently rents the space.
$168,953.93
Given the following information on an interest-only mortgage,
$350
Given the following information, calculate the funds from operation (FFO).
$4,070,000
Given the following information, calculate the balloon payment for a partially amortized mortgage. Loan amount: $84,000,
$73,103
Suppose an investor is interested in purchasing the following income producing property at a current market price of $450,000. The prospective buyer has estimated the expected cash flows over the next four years to be as follows: Year 1 = $40,000, Year 2 = $45,000, Year 3 = $50,000, Year 4 = $55,000. Assuming that the required rate of return is 12% and the estimated proceeds from selling the property at the end of year four is $500,000, what is the NPV of the project?
$9,889.56
Given the following information, calculate the loan-to-value ratio
0.77
Given the following information, calculate the debt coverage ratio
1.50
Given the following information on a 30-year fixed-payment loan, determine the remaining balance that the borrower has at the end of seven years. Interest Rate: 7%, Monthly Payment: $1,200.
164,402
Given the following information, calculate the break-even ratio
68.6 %
Assume that an industrial building can be purchased for $1,500,000 today
7.07%
Given the following information, calculate the lender's yield. Loan amount: $166,950, Term: 30 years, Interest rate: 8 %, Payment: $1,225.00, Discount points: 2.
8.2 %
Given the following information, calculate the effective borrowing cost (EBC).
8.5%