IRR formula

From google answers, I got the following formula:

0 = -1000 + 10/(1+i) + 10/(1+i)^2 + ... + 10/(1+i)^11 + 1010/(1+i)^12

So $1000 invested at time zero (which will be a negative amount) will exactly offset the streams of income (which will be positive) that you get in future years when you have guessed the correct IRR. Remember that you have to include the principal being returned in the last year.

Below is the calculation for $1000 invested for three years with the principal coming back at the end of the 3 years.

0 = -1000 + 10/(1+.01) + 10/(1+.01)^2 + 1010/(1+.01)^3
0 = -1000 + 9.9 + 9.80 + 980.30
0 = -1000 + 1000

1% makes the equation balance, so 1% is the IRR of this investment.

Shops of Ann Adler

4966 Poplar. 4320 sq ft. Gary Shanks says leases for $15 NNN. Owner asks for $4500 per month rent plus around $900 for taxes and insurance, so tenant pays a total of $5400 gross per month.

I met Gary at site 18-June-09. He is with Shopping Center group.

Owner is asking $650,000 for sale. He will owner finance at 7% for 15 to 20 years.

U-Store-It 3686 Old Germantown rd

Price list I got at U-Store-It office from manager Tim McCarthy.

Went to Southwind Storage (right next to Cotton Plant - owned by Jack Johnson) 7279 WInchester and talked to manager Loretta and she had
10 x 10 ncc $80 10 x 10 cc $110

Ann called Southwind Storage 17-July-09 and got outdoor parking prices:

12 x 30 $61
12 x 37 $68
12 x 40 $72 <-- this is not a standard size. Manager could make one though.

Collierville houses

459 Center - For Sale List price $139,900 (Nancy

Toms agent at John Green) 3 bed 2 bath

526 Center - for lease - $900 per month (would take $850) 1 bath 2 bedroom I think. Margie talked to John Green about this house. 1016 sq ft according to zillow.com.

gift tax rules

Annual exclusion is $13,000 in 2009.
Lifetime exclusion is $1 million in 2009.
Estate tax exclusion is $3.5 million in 2009.
So if you give one person more than $13,000 in a single year, then the amount over the $13,000 goes against your $1 million lifetime exclusion.

Your lifetime exclusion goes against your estate tax exclusion. So if you have used up say $500,000 of your lifetime exclusion before you die, then at your death, you have only a $3 million estate tax exclusion, not $3.5 million.

From www.fairmark.com/begin/gifts.htm:
Most people don't have to worry about this tax because it generally doesn't apply until you make gifts exceeding annual exclusion amount to one person within a single year. And there are other exclusions that often prevent the gift tax from applying. There is an unlimited exclusion for gifts to your spouse. (An annual limit applies if your spouse is not a U.S. citizen.) And there's an unlimited exclusion for the payment of medical expenses or educational costs, provided you make these payments directly to the service provider or educational institution.

Corner of 178 and Magnolia in OB

Owner is Mavin Gilmer. It is zoned M1 industrial. Marvin's office is in the 18,000 sq ft bldg that is on the site. The property is roughly a square I think. He did not really give an asking price but said that an agent told him six years ago it was worth $1 million. That would be about $3.70 per foot. This is the SE corner of the intersection.

4965 Black - Gary Myers

Small retail bldg which faces North. Gary Myers (761-5595) says owner does not want to sell. It is 3000 sq ft and leases for $4250 per month. That's $17 per foot. Gary says the lease will be a NNN lease but the price including taxes, insurance, and maintenance will end up being the $4250 figure above. So that is a gross figure. This bldg is right behind Mr. Pride Car wash on poplar.

621 Mendenhall behind Belmont Grill

Small Retail bldg that faces east on west side of Mendenhall. Joe Jarratt (682-7606) of Ford Jarratt Realty is agent. It is for lease not for sale. The rental rate is $17 per foot NNN. It is 2800 sq ft