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： 

• 这个给力 -万枫- ♂ (0 bytes) () 05/11/2012 postreply 07:49:09

• 多谢版主分析，看来是不是盈利，关键能不能10年后卖出去。另外大家如何找律师？ -新手123- ♂ (0 bytes) () 05/11/2012 postreply 07:52:56

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

• 俺笔拙嘴笨，除了多谢，也不知道如何感谢二位。 -新手123- ♂ (0 bytes) () 05/11/2012 postreply 08:51:29

• 今天决定在公司上财会课，读数字还得想会。 -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负责付地税. -梁山sl- ♂ (166 bytes) () 05/11/2012 postreply 22:03:30

• 谢谢分析, 不过最后一步 959k 的计算好像有问题 -albuquerque- ♂ (1268 bytes) () 05/12/2012 postreply 15:41:06