SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Spekulatius who wrote (57710)8/7/2016 3:16:01 PM
From: E_K_S   of 78670
 
It was 30 years and through a special SBA loan program. I was really surprised he was able to get anything over 20 years. It's possible these were special housing rates/programs for his development and may/could have been subsidized by State and/or County.

He did say that the application process took a long time over 6 months. This was last year too so not sure what the rates are now or if they are even doing those programs.

My point is that the old way of looking at the discount rate for DCF analysis may be different now for some other types of asset classes (ie REITs). If you look at 15-20 years rather than 10 years for the adjusted discount rate, you see an ok analysis become a very good deal.

EKS
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext