This section is from the book "Practical Real Estate Methods For Broker, Operator & Owner", by Thirty Experts. Also available from Amazon: Practical Real Estate Methods for Broker, Operator, Owner.
Table for the Purchasing of Leases, for the Terms of Years
Certain at Rates from 4 to 10 per cent Interest Which the Purchaser May Thereby Make of His Money
Years | 4% | 4 1/2% | 5% | 6% | 7% | 8% | 9% | 10% |
Years' Purchase | Years' Purchase | Years' Purchase | Years' Purchase | Years* Purchase | Years' Purchase | Years' Purchase | Years' Purchase | |
1/2...... | .490 | .489 | .488 | .485 | .483 | .481 | .478 | .476 |
1 ..... | .962 | .957 | .952 | .943 | .935 | .926 | .917 | .909 |
1 - 1/2..... | 1.442 | 1.435 | 1.428 | 1.414 | 1.401 | 1.388 | 1.374 | 1.362 |
2 ..... | 1.886 | 1.873 | 1.859 | 1.833 | 1.808 | 1.783 | 1.759 | 1.736 |
2 - 1/2..... | 2.357 | 2.340 | 2.323 | 2.290 | 2.258 | 2.226 | 2.195 | 2.165 |
3 ..... | 2.775 | 2.749 | 2.723 | 2.673 | 2.624 | 2.577 | 2.531 | 2.487 |
3 - 1/2..... | 3.236 | 3.205 | 3.175 | 3.115 | 3.057 | 3.001 | 2.946 | 2.893 |
4 ..... | 3.630 | 3.588 | 3.546 | 3.465 | 3.387 | 3.312 | 3.240 | 3.170 |
4 - 1/2 ........... | 4.081 | 4.033 | 3.985 | 3.893 | 3.804 | 3.718 | 3.634 | 3.554 |
5 ..... | 4.452 | 4.390 | 4.329 | 4.212 | 4.100 | 3.993 | 3.890 | 3.791 |
5 - 1/2..... | 4.893 | 4.825 | 4.757 | 4.626 | 4.501 | 4.380 | 4.264 | 4.153 |
6 ............ | 5.242 | 5.158 | 5.076 | 4.917 | 4.767 | 4.623 | 4.486 | 4.355 |
6 - 1/2..... | 5.674 | 5.582 | 5.492 | 5.317 | 5.151 | 4.993 | 4.841 | 4.697 |
7 ............ | 6.002 | 5.893 | 5.786 | 5.582 | 5.389 | 5.206 | 5.033 | 4.868 |
7 - 1/2..... | 6.425 | 6.306 | 6.191 | 5.969 | 5.759 | 5.559 | 5.370 | 5.190 |
8 ..... | 6.733 | 6.596 | 6.463 | 6.210 | 5.971 | 5.747 | 5.535 | 5.335 |
8 - 1/2..... | 7.146 | 6.999 | 6.856 | 6.583 | 6.326 | 6.083 | 5.854 | 5.637 |
9 ..... | 7.435 | 7.269 | 7.108 | 6.802 | 6.515 | 6.247 | 5.995 | 5.759 |
9 - 1/2..... | 7.839 | 7.661 | 7.489 | 7.162 | 6.855 | 6.567 | 6.297 | 6.043 |
10 ................ | 8.111 | 7.913 | 7.722 | 7.360 | 7.024 | 6.710 | 6.418 | 6.145 |
10 - 1/2 ........ | 8.506 | 8.295 | 8.092 | 7.708 | 7.349 | 7.015 | 6.702 | 6.411 |
11 ..... ............ | 8.760 | 8.529 | 8.306 | 7.887 | 7.499 | 7.139 | 6.805 | 6.495 |
11 - 1/2..... | 9.146 | 8.901 | 8.666 | 8.222 | 7.810 | 7.428 | 7.074 | 6.744 |
12 .......... | 9.385 | 9.119 | 8.863 | 8.384 | 7.943 | 7.536 | 7.161 | 6.814 |
12 - 1/2..... | 9.762 | 9.481 | 9.212 | 8.707 | 8.241 | 7.811 | 7.414 | 7.047 |
13 .......... | 9.986 | 9.683 | 9.394 | 8.853 | 8.358 | 7.904 | 7.487 | 7.103 |
13 - 1/2..... | 10.353 | 10.036 | 9.732 | 9.164 | 8.643 | 8.165 | 7.726 | 7.322 |
14 .......... | 10.563 | 10.223 | 9.899 | 9.295 | 8.745 | 8.244 | 7.786 | 7.367 |
14 - 1/2..... | 10.922 | 10.566 | 10.227 | 9.594 | 9.018 | 8.492 | 8.011 | 7.571 |
15 ........ | 11.118 | 10.740 | 10.380 | 9.712 | 9.108 | 8.559 | 8.061 | 7.606 |
15 - 1/2 ........ | 11.469 | 11.074 | 10.698 | 10.000 | 9.368 | 8.794 | 8.272 | 7.796 |
16 ......... | 11.652 | 11.234 | 10.838 | 10.106 | 9.447 | 8.851 | 8.313 | 7.824 |
16 - 1/2..... | 11.994 | 11.559 | 11.146 | 10.383 | 9.695 | 9.074 | 8.511 | 8.001 |
17 ..... | 12.166 | 11.707 | 11.274 | 10.477 | 9.763 | 9.122 | 8.544 | 8.022 |
17 - 1/2..... | 12.499 | 12.023 | 11.573 | 10.744 | 10.000 | 9.332 | 8.731 | 8.187 |
18 ..... | 12.659 | 12.160 | 11.690 | 10.828 | 10.059 | 9.372 | 8.756 | 8.201 |
18 - 1/2..... | 12.985 | 12.467 | 11.979 | 11.084 | 10.285 | 9.571 | 8.931 | 8.356 |
19 ..... | 13.134 | 12.593 | 12.085 | 11.158 | 10.336 | 9.604 | 8.950 | 8.365 |
19 - 1/2..... | 13.451 | 12.891 | 12.365 | 11.404 | 10.551 | 9.792 | 9.115 | 8.509 |
20 ........ | 13.590 | 13.008 | 12.462 | 11.470 | 10.594 | 9.818 | 9.129 | 8.514 |
20 - 1/2..... | 13.900 | 13.298 | 12.733 | 11.706 | 10.800 | 9.997 | 9.283 | 8.647 |
21 ...... | 14.029 | 13.405 | 12.821 | 11.764 | 10.836 | 10.017 | 9.292 | 8.649 |
21 - 1/2..... | 14.331 | 13.686 | 13.083 | 11.991 | 11.031 | 10.185 | 9.437 | 8.772 |
22 ..... | 14.451 | 13.784 | 13.163 | 12.042 | 11.061 | 10.201 | 9.442 | 8.773 |
22 - 1/2..... | 14.745 | 14.058 | 13.417 | 12.259 | 11.248 | 10.360 | 9.578 | 8.883 |
23 ..... | 14.857 | 14.148 | 13.489 | 12.303 | 11.272 | 10.371 | 9.580 | 8.887 |
23 - 1/2..... | 15.143 | 14.413 | 13.734 | 12.512 | 11.450 | 10.521 | 9.707 | 8.985 |
24 ..... | 15.247 | 14.495 | 13.799 | 12.550 | 11.469 | 10.529 | 9.707 | 8.991 |
24 - 1/2..... | 15.526 | 14.753 | 14.036 | 12.751 | 11.638 | 10.671 | 9.823 | 9.077 |
25 ..... | 15.622 | 14.828 | 14.094 | 12.783 | 11.654 | 10.675 | 9.826 | 9.084 |
Assuming a lease of ten years producing a net income of $1,0000, the value of same, if rent is payable monthly, will be, on a six per cent basis, $1,000 x 7.360 (table), $7,360 x 1.02721 (constant factor, tab*e below) or $7,560.26.
 
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