abovetheclouds
New member
- Joined
- Mar 1, 2022
- Messages
- 2
I may be in the wrong sub-forum, if so please move to where it belongs. I don't know precisely what kind of math I'm trying to figure out here. Thanks! Hopefully what I'm saying below makes sense to you despite seeming kind of complicated to me. I included abbreviations for the variables, use them if they help share an answer or discard them if they are confusing or unhelpful.
Let's say I am trying to purchase a skyscraper. I will be forced to make a Down Payment (DP) of 20% of my Offer Price (OP). I will need to make an Initial Investment (II) into the skyscraper because it is really dated. However, once I make the Initial Investment, the skyscraper will be worth the Market Value (MV). I can then recover a Refinance Total (RT) equal to 90% of Market Value (MV).
The Offer Price can be anything I want but the Market Value, Initial Investment and the fact that the Refinance Total equals 90% of MV cannot change. What I am trying to solve for is the Offer Price (OP) that makes the Refinance Total minus (Initial Investment + Offer Price) equal the Down Payment.
I am confused with the problem because the Down Payment changes in response to adjustments to the Offer Price. And because I have the Offer Price, which I'm trying to solve for, situated on both sides of the equation.
If it helps, let's make the following values available for any response I might get:
Offer Price (OP) = ??
Initial Investment (II) = $1,000,000
Market Value (MV) = $20,000,000
Refinance Total (RT) = .9MV = $18,000,000
Down Payment (DP) = .2(OP)
How do I solve this so that the Offer Price results in (Refinance Total minus (Initial Investment + Offer Price)) equal to the Down Payment or (20% of Offer Price)?
Let's say I am trying to purchase a skyscraper. I will be forced to make a Down Payment (DP) of 20% of my Offer Price (OP). I will need to make an Initial Investment (II) into the skyscraper because it is really dated. However, once I make the Initial Investment, the skyscraper will be worth the Market Value (MV). I can then recover a Refinance Total (RT) equal to 90% of Market Value (MV).
The Offer Price can be anything I want but the Market Value, Initial Investment and the fact that the Refinance Total equals 90% of MV cannot change. What I am trying to solve for is the Offer Price (OP) that makes the Refinance Total minus (Initial Investment + Offer Price) equal the Down Payment.
I am confused with the problem because the Down Payment changes in response to adjustments to the Offer Price. And because I have the Offer Price, which I'm trying to solve for, situated on both sides of the equation.
If it helps, let's make the following values available for any response I might get:
Offer Price (OP) = ??
Initial Investment (II) = $1,000,000
Market Value (MV) = $20,000,000
Refinance Total (RT) = .9MV = $18,000,000
Down Payment (DP) = .2(OP)
How do I solve this so that the Offer Price results in (Refinance Total minus (Initial Investment + Offer Price)) equal to the Down Payment or (20% of Offer Price)?
