hard money
Having a tough time explaininng to old school people where their numbers on the businesses have sliped so bad due to lack of capital that they only qualifty for hard money. Have a client who owns a property that four years ago was valued at $500,000 but his sales were 6 million a year. Today his sales are less then three million and he still thinks the property is worth 500,000 dollars.
I sent him a email explanning how property is valued on the numbers based on the cash that the property produces and he doesn't want to understand.
Any suggestions
Comments (4)
Down over 50 per cent. Commercial property is valued on how much cash flow it produces as every investors knows. Farm land is only valued based on how much crops it produces
Howard Stokes, about 16 years ago
It is a commercial truck dealership located n Northern Ohio where the economy is terrible and in my opinion is not going to recover for a long time
Howard Stokes, about 16 years ago
That is financials from now compared to 4 years ago.
Jon Klaus, about 16 years ago
What kind of business is he running from the property? Seems side by side balance sheet and income statement comparisons with key numbers highlighted should tell the story.
Jon Klaus, about 16 years ago