How loan rates move what buyers pay for apartment buildings
A buyer's lender sizes the loan on income, not price. Worked numbers on how each half-point of rate cuts the loan and pushes offers down.
What your apartment building is worth to a buyer at today's rates.
A buyer's lender sizes the loan on income, not price. Worked numbers on how each half-point of rate cuts the loan and pushes offers down.
Owners and buyers rarely agree on net operating income. The adjustments a buyer's underwriter makes to your numbers, with the effect on value worked out.
A sale ends the risk and can trigger tax. A refinance keeps the building and returns some equity. How to compare the two on your own numbers.
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