Stearns County, Minnesota | Dan Loehr - 4/17/2025 12:29 Green Acres Guy - 4/17/2025 08:51 What is the useful life of the asset after the 30 year period? What are your maintenance costs? What are your management costs? Is it wind or solar where the land is essentially worthless due to the clean up costs? Is it a rental warehouse, that if it is maintained it increase is value? On rental house, if the monthly rent is not 1% of the cost of purchase I will not touch them. If you are getting rent of 10,000 a year, 833 a month. if it is an asset with maintenance and management i would value it at 83,300 not 200,000. Appreciating assets, like land that is not developed for other purposes, is different of course. Need more info on asset class to give a better answer. Call it a cell tower ---99 year lease no expenses takes up 1/3 of an acre I said figure 30 years because never know how long the world will need cell towers People are trying to buy out the lease I'm trying to put a current value on the lease buy out Signing bonus and up front money Well over paid for the 1/3 acre BUT we still own the land I'm using 5% because that's close to what can get --tower is located out of the way don't have to go around it to farm Offers have been close to $100K ----think getting a monthly check is better but I don't know how much better I know $200K collecting 5% gives $10K yearly BUT I don't know how to adjust for the 3% inflation add on Dan On the $100,000 at 3% for 30years, the simple interest is $3,000 X 30=$90,000. You divide the $90,000 by 2 for $45,000 X 3%= $1,350 X 30 years=$40,500 for interest on the interest. The total $100,000 + $90,000 + $40,500 = $230,500. This would be closed. |
figuring the value of an asset with a 3% inflation
