I have just purchased a commercial property for $1.1m. The bank tell me that i have to have 70% paid off by year 5. After doing the numbers, I will have massive negative cashflows for the first half of the investment and my IRR is horrible compared to a loan of 10-12 years. Do banks usually demand this? Also, do you think that IRR is the “right” analysis to use, rather than ROE or the like?
Any comments would be great.
Viewing 1 post (of 1 total)
The topic ‘commercial investment analysis’ is closed to new replies.