How Would You Evaluate Lee’s Search for a Mortgage?
Autor: Jesse Rainey • November 27, 2017 • Case Study • 341 Words (2 Pages) • 936 Views
How did Lee search for his property?
How would you evaluate the Pinckney Street property? What are the risks and rewards?
How would you evaluate Lee’s search for a mortgage?
What do the numbers look like? Should Lee make this investment? (Hint: For the numbers, focus on the cash-on-cash return. Note that there should be a cash-on-cash return if Lee stays with the existing lender, and a different cash-on-cash return if he goes with the new mortgage company. In either case, Lee’s $240,000 will be a bit short of the actual equity cash investment needed to buy the property. When calculating the cash-on-cash return, assume that his parents would give him the additional money necessary to purchase the property. They won’t charge him any interest, but they do want to be paid back their money in the future when he sells the property).
What are some of the key takeaways from this assignment? What did you learn? Was there anything that surprised you in the case study? What did you find challenging in the assignment?
How did Lee search for his property?
How would you evaluate the Pinckney Street property? What are the risks and rewards?
How would you evaluate Lee’s search for a mortgage?
What do the numbers look like? Should Lee make this investment? (Hint: For the numbers, focus on the cash-on-cash return. Note that there should be a cash-on-cash return if Lee stays with the existing lender, and a different cash-on-cash return if he goes with the new mortgage company. In either case, Lee’s $240,000 will be a bit short of the actual equity cash investment needed to buy the property. When calculating the cash-on-cash return, assume that his parents would give him the additional
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