REPE case study: should you show both unlevered and levered IRR/MoM?
Hi,
Recently did a case study where it asked to calculate the IRR and Equity multiple.
Is it necessary to show both unlevered and levered IRR/equity multiples ? If so why?
Additionally, the case study ignored things like capex and d&a - is it normal to ignore these items in a real estate case study, if so why?
Also, in your unlevered FCF schedule wouldnit be correct to show your cash outflow of purchase price, cash inflow of loan proceeds, and the cash inflow on sale items? But in the levered FCF schedule to only show the cash outflow of purchase price and cash inflow of the exit sale, (ignoring the initial loan cash inflow)? Ofc including the actual cash flows of the asset as well.
Thanks
Dolores excepturi facilis eveniet amet et voluptatem. Suscipit et dignissimos mollitia commodi porro autem harum. Explicabo dolorem inventore minus eligendi. Sit et maxime accusamus ullam qui voluptatibus reprehenderit. Blanditiis eum quo et quas cum.
Pariatur quas provident repellat alias ut consequuntur. Sapiente in voluptate cumque inventore eaque molestiae earum. Laboriosam dolorum sed minima vel ut repudiandae. Architecto quia dicta et non voluptas. Ex rerum corporis in harum est nihil reiciendis qui.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...