SLO #4

Let the FUN continue!
There is no minimum or maximum to the number of pages of the paper, but the questions must be fully answered and explained. THE PAPER MUST CONTAIN THE QUESTIONS AND THE ANSWERS. DO NOT JUST WRITE YOUR ANSWERS.
In other words, state the question, then answer the question. State the next question, then answer the next question…and so on…
Where appropriate, you may provide Internet links as cite references, BUT YOU ARE ADVISED NOT TO JUST PRINT OUT A BUNCH OF PAGES FROM THE INTERNET AND SUBMIT THEM AS YOUR PAPER. You must interpret the information provided from internet sources.
AS YOU WRITE THIS PAPER, ASSUME YOU ARE AN INVESTOR TRYING TO CONVINCE ME THAT THIS IS EITHER A GOOD RENT PROPERTY OR A BAD ONE, BASED ON YOUR FINANCIAL ANALYSIS. Sell me. Persuade me. I must be convinced for you to receive a high grade on this.
MAKE SURE YOU DIRECTLY ANSWER EACH QUESTION POSED AND PROVIDE FACTUAL, REFERENCED SUPPORT FOR YOUR RESPONSE. Give me SPECIFIC FACTS and REFERENCE the facts/information you provide.
The paper may be typed in Word, double spaced, with proper grammar and sentence structure,
Your Financial Analysis should be in Excel, using BEAT 1.
Your response to each question in SLP 4 is worth 30-40 points. Since there are 4 questions, this SLP 4 is worth a total of 150 points toward your final grade.
Item
Specific Tools for Answering SLP 4 QuestionsSpecific Tools for Answering SLP 4 Questions
Attached Files:
File BEAT_1.xls (23.5 KB)
*** Important Note: You may need to use Mozilla Firefox as your Internet browser to connect to the links provided in these SLP Assignments. ***
To use the BEAT 1 Analysis, click on BEAT_1.xls above.
The purpose of SLP 4 is to help you perform a financial analysis on a property. For SLP 4, assume you are a real estate investor looking to purchase the single family rent house you identified in SLP 3.
SLP 4 Question 1) From your previous SLP, what is the asking price of the house you are considering to purchase as a rent house? What would the house rent for?
Please do NOT use or cite Zillow or Trulia as sources in answering this or any other SLP question. These sources are not deemed reliable.
http://www.dallasnews.com/
http://www.realtor.com/
SLP 4 Question 2) You know from your earlier SLP what financing terms (interest rate and term of the loan) are available to investors. From Question (1) above, you know the Price and estimated Monthly Rent you can expect from the property you selected. Tying all this information together, and using BEAT 1 (above), show me a Financial Analysis on your property.
SLP 4 Question 3) In a brief paragraph, summarize whether you think this property represents a good real estate investment, based on your Financial Analysis. Address the issue of Rate of Return (Cash on Cash), Total Est. Annual Return (before taxes), and any other factors you deem relevant. Be specific.
SLP 4 Question 4) (a) If you do NOT think the Property represents a good investment based on your analysis, what changes, if any, could you make to structure the deal where it would make sense to you, a savvy investor? In other words, what is the BEST offer you could make to the seller that would make the property a good deal for you?
SLP 4 Question 4) (b) If you DO think the Property represents a good deal, what is the BEST offer you would make to the seller? How did you come up with your best offer? Be specific. How would this BEST OFFER change the rates of return on your investment to now make the investment more acceptable?

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