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| I tried to do a floor similar to what you are describing for a couple different landlords in the past couple years, based strictly on net income. So far, nobodies bit, but in a good year it could be a very good deal for the landlord. In a poor year it protects your bottom side. University of MO has a couple different formulas. If you are strictly on a yield/price spread, it seems to me you could be paying a bonus while locking yourself in a loss the way input prices are moving. | |
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