Question
A mobile home park sold for $850,000. The purchaser gave the seller a note (loan) secured by a deed of trust for $700,000 at 4%;
A mobile home park sold for $850,000. The purchaser gave the seller a note (loan) secured by a deed of trust for $700,000 at 4%; However, market rates for loans at banks were typically 7%. The term for the loan from the seller was 20 years with a balloon payment of 573,466.47 at the end of 5 years, What is the contribution of the financing to the sale price?
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Sport Finance
Authors: Gil Fried, Steven Shapiro, Timothy D. Deschriver
2nd Edition
0736067701, 978-0736067706
