Real Estate Debt modeling
When modeling debt used, what do you do with the remaining debt balance at Exit?
Is it added up to the debt service?
so you would have it part of your last repayment?
Thanks
When modeling debt used, what do you do with the remaining debt balance at Exit?
Is it added up to the debt service?
so you would have it part of your last repayment?
Thanks
Career Resources
Question is a bit vague.
Just model a balloon payment (deduct remaining mortgage balance from total exit price).
Pay it from your sale proceeds - your cash flow from terminal value should be net proceeds so your sale price, less transaction costs (1-2% of price), less outstanding debt.
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