Epic Associates 84-III, William C. Griffith, Jr. - Page 93




                                       - 20 -                                         

             purchase price.  EPIC further projected that the following               
             appreciation rates would be required to recoup the invest-               
             ment in the properties after sales expenses of 7 percent                 
             and the disposition fee of 2.5 percent to be paid to EPIC:               

                                               Appreciation                          
                                      Investment        Rates                         
                  End of 2d year      $507,668       6.27                             
                  End of 3d year      541,663        6.41                             
                  End of 4th year572,185             6.22                             

                  EPIC's analysis of the transaction included a                       
             computation of the rental deficit contribution.  First,                  
             EPIC personnel estimated that the project would generate a               
             monthly deficit of $2,101, taking into account estimated                 
             monthly operating expenses of $7,961, tenant rentals of                  
             $4,600 (with a vacancy rate of 11.7 percent), and monthly                
             contributions of investor capital of $1,798.  According to               
             the analysis, the present value of the monthly deficit                   
             over 36 months discounted at 13 percent is $62,364.  The                 
             analysis, which is reproduced below, designates this amount              
             as the rental deficit contribution:                                      














Page:  Previous  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  27  28  29  Next

Last modified: May 25, 2011