06-27-2006, 11:23 PM
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| Senior Member | | Join Date: Oct 2005
Posts: 2,226 | |
 Shopping center loan
My uncle has owned a shopping center for the last 20 years. He owns it free and clear. He wants to cash out and retire as his health is not so good. The net income after expenses but before depreciation is $600,000 a year. This allows for a 5% vacancy factor and 10% for leasing expenses and professional management. He has offered it to me for $4 million. As I'm an inexperienced student I would keep the professional management in place. An appraisal would indicate a value of about $6 million. |
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Shopping Center Loan 
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