Answered step by step
Verified Expert Solution
Question
00
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
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
Get Instant Access with AI-Powered 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