458 A balloon offer? Quote attached

Assuming you will get a better return (that will more than offset the cost of a loan) is a bet - if it would not, the lenders themselves would go that way and no loan would be available (they are there to make money and they have no reason to deliberately choose an option that provides a lower return).

 

Are you that eager to get a Ferrari with such poor deal?

 

Here's the thing that would worry me about taking on those payments plus the balloon besides that I hate payments that are such losers, is that it might just turn out that the car has an expensive problem and that the buyer isn't in a position to deal with it because of the payments. Lets hope not but Murphy's Law......

 

Lender's want near a 0 risk. Lending money is all about managing risk and earning a profit is important, capital loss mitigation is the top priority. I invest in medical properties, which are nearly risk free in the US. I get an 12-18% ROI. If the US nationalizes healthcare, my ROI will tank. However, I cannot see that happening in my lifetime.

 

No, the ROI isn't determined by the number of rooms. The ROI is determined by the return on your investment and that is all. Whether it's 1 room or 400 rooms, it matters not. What is important is the return on your shareholder capital.

Medical office is not often owned by the physician practice or their real estate LLC. Most medical practices today are a subsidiary of a large heathcare system, typically tied to a hospital. You'll find only a very small percentage of medical practices today that are owned by doctors in the practice. Most doctors today are employees of the healthcare system, very few have managed to remain independent. The actual office space is often owned by Private Equity and with a lease back to a subsidiary of the health system where the doctors are employed.

 

Actual real estate through private equity real estate partnerships. Managers set up a General Partnership with 1% ownership to manage the properties and a limited partnership for investors.

 

1st off, with an acquisition fee, sales taxes based on payments, down payment (cap reduction) and residual, it's a lease. If my math is correct you'll have made 249,305.4 in payments with another $100k+ to go at the end of the term. Run.