Assuming you are both an equity and debt investor on the


Assuming you are both an equity and debt investor on the following deal: An investor purchases a commercial note in default for $648,000 and renegotiates new terms with the existing owner at $764,000 at 12% interest-only for 6 months. 6 months later, the owner refinances and the deal funds. As the private money investor on the deal you receive 100% of the interest and 20% of the profit on the note flip. What is your annual rate of return on your money?

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Financial Management: Assuming you are both an equity and debt investor on the
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