Answered step by step
Verified Expert Solution
Question
1 Approved Answer
It is real estate questions: Q3. Your required return is 9%. A seller is asking $1,400,000 for his property. The NOI is $115,000. Will you
It is real estate questions:Q3. Your required return is 9%. A seller is asking $1,400,000 for his property. The NOI is $115,000. Will you get your required return?What price should you pay to get your required return?
Q4. Using the information in Q3, a lender requires a Debt Coverage Ratio (DCR) of 1.30 and will lend up to 65% of the price of a property. The lender offers 10 Year Mortgages that amortize over 25 years. The current rate is 5.75%. (MC = 0.075493) What is the maximum mortgage this lender will provide for this property?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started