If he does not come up with that amount, then the math makes the decision.

As I think though the Math...If a property that is worth 5.3 million today at 6% cap approximately, at 5% interest rate; if the same property I could get at 4.3 millions in 2 years if the market falls, then interest rate possible at 6-7%, my cash on cash may be better but still not significantly better due to the higher interest rate, plus opportunity costs of sitting on capital for 2 years (1.3 million investment earning 1% bank interest instead of 7% COC if invested, loss of tax break depreciation, total loss may equal 200k loss in profit), plus increase in the rents and some value add could increase the cap from current 6 to 6.7 or so.

This was primarily done so I could have more control over my own career/earnings, but I retained every aspect of the company (including it's 4 employees) and re-branded with a new name and mission as she was a great appraiser but not much of a businesswoman.I didn't have the liquid assets to buy the business outright, and it was a bit wonky in the math anyway since I was a top producer, my gross earnings couldn't really be factored in to the totals as I would have made that anywhere.

I am currently going to my local college to eventually get my CPA so I have good math skills and a general understanding of money/investments/risk.

I apologize ahead of time for reposting it from a other thread but I am curious about everyone’s thoughts on this one below?

If a property that is worth 5.3 million today at 6% cap approximately, can be bought at 5% ...

First, very good catch on the math error Wayne, definitely brain fart! 

@Chris Jurgens, run your numbers and you can find out, I use this simple bar napkin math to quickly analyze, and then if those numbers work out, I analyze in depth. 

I am starting to think that lotteries are not the only tax on people who can't do math--so are banks.

It's math and only math. 

Keith, the quick math I like to use is figure out what valuation multiple a given cap rate is, so if deals trade for ~8% cap rates in markets you review, that's 12.5x, 9% is ~11 x, etc..