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Reviewing Cash Requirements
The cash requirements section will give you a fairly good idea of how much cash will be required to close this deal. This will also tell you how much cash is required to operate the property through the end of the acquisition year. If you have entered a number for capital improvement in the first year, the model will add this amount to the cash required to close.
 Downpayment
The downpayment is a calculated amount, based upon your choices of loans and the timing of the second mortgage.
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 Transfer Taxes
Enter the percentage of the purchase price that will be used to calculate the buyer-side transfer taxes. If you do not know this number, call a local real estate broker or Title Insurance company. Just enter the percentage, the model will perform the calculations.
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 Title Insurance
Enter the amount per $1,000 of purchase price that will be charged for Title Insurance. If you do not know this number, contact a local Title Insurance Agent or underwriter. This is a rough number and subject to several modifications, but it's a good place to start.
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 Soft Costs
Enter the amount of any other soft costs of acquisition. Examples of soft costs would be appraisal, survey, or some due diligence costs.
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 Cash needed to close
This amount is calculated and is based on your prior choices.
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 Renovations
If you add renovations in the next section, they will appear here and be included in the cash needed to close.
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 Cash Required thru Yr 1
As you can see, the model imports the gain or loss from operations for the first year, and then advises you how much cash will be required to close, and operate the property through the end of the acquisition year.
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