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How much would such business cost (formula for rough estimate plz)? Rental business

How much would such business cost (formula for rough estimate plz)? Rental business owns a few properties. Not much equity, but mortgage payments take only 35% of revenue per unit max (some units take 20%). Steady monthly income. Thanks.

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Answers (2)
William A. Price
www.growthlaw.com
Business Lawyer
DuPage County, IL

A business is worth what a buyer thinks he or she could get out of it if they purchased same. Your "rental" business might represent a strategic opportunity for a similar company that needed to better use staff and other resources they already have in place, or might be worth the estimated net present value of future income streams less capital and operating costs, if your buyer is motivated only by cash flow. Look for other investment companies and real estate investors in your market space, and see if you can pitch them on how your deals would improve their portfolio.

Hope this helps,

Bill Price

William A. Price
Attorney at Law
www.growthlaw.com

Nov 5, 2011
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The BAF Group LLC
MD

It is impossible to give you a credible answer, based on this kind of information. Making a valid, even rough estimate is not something that a responsible person can and should do.

Oct 3, 2011

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