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Updated over 11 years ago on . Most recent reply

Eric K.'s profile image
Eric K.'s profile image
Eric K.
  • from New Orleans, Louisiana
  • Member since Jun 9, 2013

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29
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12
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Eric K.'s profile image
Eric K.'s profile image
Eric K.
  • from New Orleans, Louisiana
  • Member since Jun 9, 2013
Eric K.
  • New Orleans, LA
12
Votes |
29
Posts
Commercial Real Estate Investing

Calculating IRR

Eric K.
  • New Orleans, LA
Posted

Hey Guys

I'm trying to understand a real estate calculation. I need to find the IRR for an investment where I have reserves to cover tenant improvements that are put into the deal when it's purchased. The reserves will be used in year 2. I am reserving $250,000 that will be used.

In year 2 do I add the reserves that are being spent into the IRR calculations? Is it a positive cash flow for year 2?

Thanks!

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