Real Estate Analyst Question:
Download Questions PDF

Explain what is levered IRR?

Answer:

A levered IRR is just the Internal Rate of Return when you take financing into account. So basically you run a DCF, take out interest payments and calculate the IRR over the hold period. This will be higher mainly because taking on debt juices your returns and more specifically the first year cash flow will be lower because you have debt.

Download Real Estate Analyst Interview Questions And Answers PDF

Previous QuestionNext Question
Tell me why Real Estate?Tell me what do you look for in a possible real estate investment?