Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The published sale price of a small apartment building comparable sale was $160,971. The buyer had mostly non-reported income and could not qualify for a

image text in transcribed
The published sale price of a small apartment building comparable sale was $160,971. The buyer had mostly non-reported income and could not qualify for a standard mortgage. He agreed to purchase the property for $160,971. with the seller talking back a 78% purchase-money mortgage at 6% compounded monthly for 32 years with a balloon payment in 11 years. The market interest rate for a property like this at the time of sale was at 11% with no points. What is the cash equivalent sale price using the calculator yield-to-market technique, assuming the buyer would keep the financing in place for 11 years

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Personal Finance For Musicians

Authors: Bobby Borg

1st Edition

1538163306, 978-1538163306

More Books

Students also viewed these Finance questions