Appraisal Matters

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 a . . . → Read More: Solving the "What's the Cap Rate" Dilemma – Part 3 of 3

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 percent . . . → Read More: Solving the "What's the Cap Rate" Dilemma – Part 2 of 3