Refer to the participation loan example in the chapter. Suppose the participation was reduced to 25 percent
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Refer to the participation loan example in the chapter. Suppose the participation was reduced to 25 percent of the NOI in excess of $100,000 but increased to 75 percent of the gain in value.
a. What is the investor’s before- and after-tax IRR?
b. What is the lender’s IRR?
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Related Book For
Real Estate Finance and Investments
ISBN: 978-0073377339
14th edition
Authors: William Brueggeman, Jeffrey Fisher
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