What is your loan amount

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Question - Use the given information to solve the following questions. You have purchased a building for $12,000,000. There are ongoing NNN leases that will create a constant annual PGI of 1,700,000 with a Vacancy and Collection loss of 10%. Operating Expenses will be constant at 575,000 per year, and Capital Expenditures a constant 120,000 per year. You have obtained a 5-year, 4.5% partially amortizing loan at 65%LTV with 1.5 points that has a 25-year amortization period. You expect to sell this building for a net of $14,500,000 (Le. after selling expense are 'paid) five years from today.

Required - What is your loan amount? What is your initial investment? What is your monthly loan payment? What is your loan balance after 5 years? What is your ADS?

Reference no: EM133164758

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