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To select your target investment, assume you have pulled together $2,000,000 of equity using money from your savings and that of your friends and
To select your target investment, assume you have pulled together $2,000,000 of equity using money from your savings and that of your friends and family so you want to be sure to invest these funds wisely. To determine your maximum price point, you will assume that you will be able to get a maximum loan of 70% of the value. You will be assuming debt pricing at 180 b.p. over the ten year treasury, you can find this rate doing an internet search. 11408 Ohio Ave, Los Angeles, CA 90025 5 Unit Apartment Building Offered at $1,500,000 at a 4.14% Cap Rate in Los Angeles, CA Max Price Point: 70% of 1.5MM is 1,050,00 Debt Pricing at 180 bp over 10 year treasury =
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