You will capitalize the project with a 70% first mortgage based on the purchase price, a mezz
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You will capitalize the project with a 70% first mortgage based on the purchase price, a mezz loan equal to 50% of the equity after application of the first mortgage with 90% of the remaining equity needed sources from a money partner. The partner will require a 5% cumulative preferred return. In addition, the partner will require 9% IRR look back prior to any splits of the remaining cash flow upon sale.
You are to calculate the overall return to the investor and to you.
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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