Question 1:

You are putting together a deal to fund the acquisition of a medium-sized multi-family property in Hoboken and need an additional $500,000 to close on the property. You propose a deal to form a joint venture where you will provide 5% of the required equity and your investors will provide the rest. How much equity is contributed by your investors?

Question 2:

Cashflows are distributed on a parri passu basis until reaching a 10% return. If the cash flow after debt service in year 1 is $10,000, what is the distribution received by your investors?

Question 3:

The cash flows after debt service for the three-year holding period are:

	0	1	2	3
CF from operations		10,000	20,000	50,000
CF from sale				655,000
Total	(500,000)	10,000	20,000	705,000

What is the total distribution that is required in the third year for you and your investors to attain a 10% return? [Hint: construct the capital account and determine the total equity outstanding and interest due in the last year.]

Question 4:

What is the distribution made to the investors in year 3 based on a 75/25 promote?