I am not good at crunching numbers but I just had a few questions about the Ringwood case study answers that I hope someone could shed some light on.
In solution one shouldn’t the interest be $83200 (not $72800), this would make the cash out $100254.37, the cash flow would then be -$35192 & the CoCR -9.9%?
In solution two (a) the second half of the years interest should be $10600 (total interest for the year of $52200) giving a CoCR of -5.44%?
In solution two (b) the minimum loan amount is paid ($520000 not $775000) which gives a CoCR of 63.52%?
Solution three looks good.
I am not nit picking but I just want to make sure I haven’t misunderstood the examples.
CheersHi Gazman, i too checked my figures and have similar results but i, still new to crunching too, thought i was wrong….
Maybe someone with more experience could clarify as i would love to know where i went wrongCheers, James
[hmm]
I identified this error yesterday.
I have thoroughly gone over the numbers. And can see that there have been an error made in the answers template sent out!
The interest only was calculated at 7% but it was written in the template answers that it was done at 8%.
This through the answers out right the way thru, ‘a good ten grand’
it should have been 83200 and it was 72800.**********
Interested in Joint Venture Reno ProjectsI’m glad others found the errors and the courage to ask if the “guru” could be wrong. I agree with the errors found by Gazman and would like to point out something i found in the third solution. the sale proceeds seem to have the sale cost taken out already and the rent has not been calculated at 92% occupancy like the other.
I worked out the CoCR to be 136.94% for this one. Does anyone else agree?
Cheers
MikeHhhmmm…
Jaffasoft, I wonder if this information you have will affect the prospects of the latest R.E.S.U.L.T.S Mentoring Program.
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“ask and you shall recieve”
Sincerely, Jarrah
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