Craig 0 Report post Posted July 6, 2006 Is the mortgage included in the Cap rate formula? Really shouldn't be just checking... Share this post Link to post Share on other sites
MichaelC 160 Report post Posted July 6, 2006 No. On the NOI side of the equation, principal and interest are not factored in, Craig. Share this post Link to post Share on other sites
Craig 0 Report post Posted July 6, 2006 No. On the NOI side of the equation, principal and interest are not factored in, Craig.MC: The reason I ask is I have a Option which I have tried to assign with great difficultly. The income and expense statement has the Cap rate being 7.89. I believe the owner has set the spreadsheet up subtracting the principal and interest making the percentage low. When investors see this they move on. I truly believe this is a good investment property when the figures are correct. Thank you MC. Share this post Link to post Share on other sites
MichaelC 160 Report post Posted July 6, 2006 If the homeowner did as you say, point out to him the errors of his ways and make the necessary corrections. Share this post Link to post Share on other sites
Craig 0 Report post Posted July 7, 2006 If the homeowner did as you say, point out to him the errors of his ways and make the necessary corrections. I will be calling him shortly to make the corrections in his income and expense statement. Say MC I assigned another option to the buyer. Its closing the end of July. The 12 apartment complex in Gloversville, NY. sold for $315,000. I am getting ready to increase my fees now that my learning curve is coming up to speed. Share this post Link to post Share on other sites
Jason (AL) 1 Report post Posted July 7, 2006 Sweet deal, Craig! Congrats to ya. I'm wondering....Did the person/people that purchased the apt. building just pay for your assignment? I know this seems like the greenest of questions, as it's obvious.I'm just wondering how you structured this deal (as well as how you structure andmanage your assignments too). Thanks. Share this post Link to post Share on other sites
Craig 0 Report post Posted July 7, 2006 Sweet deal, Craig! Congrats to ya. I'm wondering....Did the person/people that purchased the apt. building just pay for your assignment? I know this seems like the greenest of questions, as it's obvious.I'm just wondering how you structured this deal (as well as how you structure andmanage your assignments too). Thanks. The buyer paid the assignment fee for the option to purchase. The buyer is a new investor group and that had to be explained many many times. They just couldn't understand what a option was. So the owner actually added it into his acceptance contract just to make sure it happened. Now thats a guy to by options from. Share this post Link to post Share on other sites
