Michael,
 
We calculated 7% but at $750/acre (Terry seems to think there is no way
we can get if for less than that, and I voiced my opinion not to go
higher).  He said that they did mention owner financing late last week -
as low as 6% so maybe we could go higher on the per acre price.  We
didn't calculate hunting income or taxes - assuming roughly they would
cancel out.  Also, Terry indicates that the farm really wants half (not
sure if he needs to tie out with Daddy) - so that would leave us with
responsibility for 175 each.
 
I think the cropland base numbers are too high on your spread sheet.  If
you add the rice base, grain base and cropland base, you come up in
excess of the total acreage.  I can redo the sheet this afternoon.
 
The end result we had is that we would each be out of pocket
approximately $500/ month.  Mark and I are willing to do that.  Not sure
what you are thinking there.
 
Sarah

 
 Original Message-----
From: Michael Hlavinka [mailto:M.Hlavinka@bre.com]
Sent: Monday, November 05, 2001 9:00 AM
To: McConnell, Sarah
Subject: Land Cash Flow Analysis



Sarah:
 
I've done some cash flow calculations on that land using the numbers
given to us by Daddy (assuming $725/ac and 7.25% financing).  Do they
agree with what you and Mark have come up with?  Have I left something
out?
 
My calculations indicate that if you can purchase for $700/ac and
finance at 7%, you break even with $61/ac rental on the rice base.  I
don't know if that is possible.
 
You can change the numbers in the worksheet and the calculations should
update to reflect the correct values.
 
Let me know what you think.
 
Michael