No more abused approach to value do I see than the sales comparison for a marina. Most appraisers aren’t crazy enough to do a cost approach. It’s a rare day indeed if it produces a number corroborated by the sales comparison approach or income approach (note that there are situations where the sales comparison approach.
Read moreTag Archives: buying
Solving the “What’s the Cap Rate” Dilemma – Part 3 of 3
Comments are closed
Posted by John Simpson
Let's have a little fun with mortgages. Spreads between Market Mortgage Amounts and Existing Mortgage Balances This type of analysis becomes really fun when the mortgage amount that you can get is much less than what the current mortgage balance really is. If you redid the calculations above but with a $2 million mortgage balance, you'd have.
Read moreSolving the “What’s the Cap Rate” Dilemma – Part 2 of 3
Comments are closed
Posted by John Simpson
The Buyer's Magic Number Reaching into my magic hat... Presto... we've got the buyer's magic number. No sleight of hand tricks here. The buyer must buy the property for no more than $2,125,000. This is the amount that pays off the seller’s mortgage or assumes it, gives him/her $625,000 in equity at closing and yields 8.
Read more