Page 6 - 906 E. Main St

Why lease when you can own?
Property Address: 906 E. Main St. El Cajon
Lease Vs. Own Analysis
OWN
Purchase Assumptions
LEASE
Lease Assumptions
Size (Square Feet) Total Project Cost
Start-Up Costs:
10% Down Payment Loan Fee/Costs Total Start-Up Costs
Monthly Costs
Mortgage Payment (P&I) Operating Expenses Property Taxes
Total Monthly Costs
Depreciation Benefit Operating Expense Deduction Property Tax Deduction Interest Deduction (7 yr Avg.) Other Benefits
Rental Income
Avg. Appreciation
Total Ownership Benefits
9,322 $1,300,000
$130,000 $22,066 $152,066
$6,935 $2,331 $1,212
$10,477
$778
$816
$424
$1,525
$0 $2,167 $5,710
$4,768
Size (Square Feet)
Lease rate per sq ft/mth NNN Monthly Lease
Start-Up Costs
Prepaid Rent Security Deposit Total Start-Up Costs
Monthly Costs
Lease Payment Operating Expense Property Taxes
Total Monthly Costs
Depreciation Benefit Operating Expense Deduction Lease Deduction
Interest Deduction
Other Benefits
Rental Income
Avg. Appreciation
Total Lease Benefits
9,322
$1.00 $9,322
$9,322
$9,322
TOTAL EFFECTIVE MONTHLY COST:
TOTAL EFFECTIVE MONTHLY COST:
Per Sq. ft.
$0.74 $0.25 $0.13
Per Sq. ft.
$18,644 PREPARED BY $9,322
2.0%
$0 n/a $4,078
$8,786
this document shall not be deemed a legally binding agreement between the parties for any purpose whatsoever. Borrower should seek advice from their Legal and Accounting professional for their own analyses.
$1.00 $0.25 $0.13
$2,331
$1,212
$12,864
$3,263
LENDER AND BORROWER UNDERSTAND AND AGREE THAT THIS DOCUMENT
This document is for discussion purposes only and is not meant to be, nor shall
it be construed as a commitment by Bank or of its affiliates to extend credit. It
is intended to serve only as a basis for discussion of a potential transaction. It does not attempt to describe all the terms and conditions that would pertain
to an SBA 504 loan or commercial property purchase. Instead, it is intended to outline certain basic points of a property purchase using an SBA 504 product and general estimated values and fees. Bank is not affiliated with The Broker firm
Monthly Ownership Benefits (Estimated)
Tax Benefits
Monthly Lease Benefits (Estimated)
Tax Benefits
n/a
$816 Intersection.
IS BASED ON ESTIMATED VALUES. In addition, the specific elements of this n/a discussion document may be revised or otherwise altered as the result of further discussions or information gathered during the due diligence process. Therefore,
Ownership Analysis Summary
Annual Effective Cost Difference Average Annual Principal Pay down
Annual Wealth Creation
15 Year Wealth Creation
$48,220
$30,918 $79,138
$1,187,077
Long Term Fixed Rates
Quick Response (48 Hour Pre-Qualification Available)
Prepared exclusively for:
Intersection Kyle Clark
www.intersectioncre.com 6
For more information contact :
California Bank & Trust Ray Weamer