good analysis..just few points.

very good analysis, just few points..

1. commercial rate on special use structures, about 6.5-7% midwest, CA usually gets 75 basis point discount.

2. commercial loan, usually expect 2.5% - 4% broker fee, plus closing cost.

3. 10 year lease without written option to extend, is somewhat short term to bank.

if I look at this building.

1. net income 96000, = 8% CAP.

2. base on 30% down, 5 year term, 20 year amortizing, monthly outlay is 5964, or 71568 / year, net 24432./year.

3. lets say closing about 4% of loan amount, $33600.

4. cash on cash be, 24432/(400000+33600) = 5.63%

5. balloon at 10 years is 525,291.

6. principle pay down at 10 year = 314709

7. net inflow = 24432*10+314709 = 559029.

now, base on my limited understanding of CRE, value of CRE is much base on length of lease term, most restaurant will occupy a builder about 25 years, after that, either complete tear down rebuild or move.

so, if this building is close to that time limited, the option to extend is somewhat in limbo.

but if we say it sold for 1mil at end of 10 years. net after commission, about 400k

so, 10 year cash in flow is 959k, less 436k investment, net about 525k

not bad, not best, but its all hands free.

所有跟帖： 

• 這個給力 -萬楓- ♂ (0 bytes) () 05/11/2012 postreply 07:49:09

• 多謝版主分析，看來是不是盈利，關鍵能不能10年後賣出去。另外大家如何找律師？ -新手123- ♂ (0 bytes) () 05/11/2012 postreply 07:52:56

• 謝謝班竹。 -梁山sl- ♂ (709 bytes) () 05/11/2012 postreply 08:44:31

• 俺筆拙嘴笨，除了多謝，也不知道如何感謝二位。 -新手123- ♂ (0 bytes) () 05/11/2012 postreply 08:51:29

• 今天決定在公司上財會課，讀數字還得想會。 -SunshineInCA- ♀ (0 bytes) () 05/11/2012 postreply 09:53:47

• If property tax is at 2%, cashflow becomes zero! -fusion- ♂ (97 bytes) () 05/11/2012 postreply 21:07:15

• 是NNN Lease, Burger King負責付地稅. -梁山sl- ♂ (166 bytes) () 05/11/2012 postreply 22:03:30

• 謝謝分析, 不過最後一步 959k 的計算好像有問題 -albuquerque- ♂ (1268 bytes) () 05/12/2012 postreply 15:41:06