What is the estimate property before tax cash-flow (ebtcf) for each year of operations?

by | Nov 19, 2022 | Real Estate

Fundamentals of Real Estate Question: I don’t know how to set up this question in excel.
You are considering the purchase of a retail building for 34 million today. Below you are given the information you need to analyze the investment and decide how to proceed.
Your expectations for this stabilized property include the following: 60 unit charging average monthly rents of $3000 a month; Free rent for 6 weeks for all the tenants in yer 1due to the recession, but this policy ends after year 1. 9% vacancy in year 1 due to the recession and 4% vacancy in all years thereafter; operating expense ratio of 45% but tenants for 25% of operating expense. Capital reserve equal to 10% of EGI; and leasing costs equal to 50% of vacancy losses. The cap rate goes up by 100 basis points during the time you are invested in the property, and you use this new cap rate to value the property at the time of sale, which is year 6. Your selling expenses are 2.75% of the resale price. You get a 60% LTV mortgage with a 7% interest rate. Your equity investors expect a return of 10%.
1. What is the estimate property before tax cash-flow (EBTCF) for each year of operations? please show the calculations in the form of a pro-forma.

Daniel f. hinkel, isbn 978-1-2854-4838-1

by | Nov 15, 2022 | Real Estate

Please read and answer Chapter 12 Practical Assignment #1 and #4
Required Text: Essentials of Practical Real Estate Law, 6thEdition, by
Daniel F. Hinkel, ISBN 978-1-2854-4838-1
For State: use California State
For County: use San Mateo County

Choose a project currently moving through a discretionary approval process in the city of new york, and attend a new york city planning commission hearing or meeting of an alternative public review body (i.e., community board, borough board, city council committee).

by | Nov 15, 2022 | Real Estate

Choose a project currently moving through a discretionary approval process in the City of New York, and attend a New York City Planning Commission Hearing or meeting of an alternative public review body (i.e., Community Board, Borough Board, City Council Committee). Prepare a brief summary of the experience, an overview of the proposal, its structure and its stakeholders, and the merits of the project. And a brief original analysis of the PPP strategies deployed and their effectiveness of lack thereof. This should be in a succinct narrative format, no longer than 500 words, at 12-point font.

Discount points = 2 percent

by | Nov 15, 2022 | Real Estate

. 1. You and your sister have decided to invest in a retail unit. You have decided to obtain an adjustable rate mortgage ARM). You anticipate to sell the unit after five years. The lender offers you a $4,275,000, 15-year ARM with the following term
Initial interest rate = 3 percent
Index = 1-year Treasuries
Payments adjusted each year
Margin = 2 percent
Interest rate cap = 2 percent annually; 5 percent lifetime
Discount points = 2 percent
Based on estimated forward rates computed from the yield curve on U.S. Treasury bills, the index to which
the ARM is tied is forecasted as follows:
end of year (EOY) 1 = 3.5 percent;
EOY 2 = 4.5 percent;
EOY 3 = 7 percent;
EOY 4 = 7.5 percent.
Compute the payments, loan balances, and yield for the ARM for the five-year period.