Epic Associates 84-III, William C. Griffith, Jr. - Page 103




                                       - 30 -                                         
             Operating expenses per month                      $54,696                
             Tenant rental revenue                             -22,860                
             Rent-up factor                                    0.889                  
             Net tenant rental                                 -20,323                
             Operating deficit                                 34,373                 
             Investor contribution                                                    
             purchase price           $3,034,550    x    0.004 –12,138                
             Net monthly deficit                               22,235                 
             Present value of deficit                                                 
             over 36 mos. at 13%                                                      
             monthly deficit of              22,235    x    29.68659,929 [sic]          
             Rental deficit contribution                       659,929                
             As a percent of purchase price                    0.2174716              

             The rental deficit contribution shown above was calculated using a net   
             borrowing cost, exclusive of servicing and private mortgage insurance    
             of 16.75.                                                                

             The rental deficit contribution computed in the above                    
             analysis differs from the amount finally negotiated with                 
             Babcock, $587,676.                                                       
                  By instrument dated December 29, 1982, EPIC assigned                
             to EA 83-XII "all its right, title and interest" in the                  
             rental purchase agreement dated December 22, 1982, with                  
             Babcock.  Thereafter, EA 83-XII closed the sale of each                  
             of the 39 condominium units as of December 30, 1982.                     
                  To finance its purchase of the condominium units in                 
             the Paseos Castellanos complex, EA 83-XII borrowed from                  
             EMI approximately 95 percent of the purchase price of each               
             unit.  On or about the closing date, EA 83-XII executed 39               
             nonrecourse promissory notes in the aggregate principal                  
             amount of $2,869,625 payable to EMI in monthly installments              
             of interest only for 5 years at the rate of 14.375 percent.              






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