A real estate investment project and its associated mortgage loan: The developer purchased the property for $1,000,000 at year 0. The developer starts to earn annual income from this property at year 1, and the initial net operating income (NOI) is $90,000. Both the property value and NOI are projected to increase annually by 2 percent. The property depreciates at a constant annual rate of 2.5 percent, which is based on only 80 percent of the original property value. The developer purchased this property with a 70 percent loan at 5 percent interest, which has an annual payment schedule and amortizes in 20 years. The developer sells the property at year 5, which incurs a 4 percent selling expense. The income tax rate is 40 percent. How can  earn more through real estate investment project .? Advice different ways to earn more money

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Increasing Profitability in Real Estate Investment Projects Here are several ways the developer coul... View the full answer