Chris Schatz, 415 Group Senior Manager discusses real estate transactions that are highly leveraged. Learn more: 415group.com
Some real estate projects may be eligible for accelerated depreciation, which allows large amounts of depreciation to be taken out in the early years of a project, leading to a taxable loss but positive cash flow. When the accelerated depreciation is over, a cash-flow problem may result and may not be enough to cover the monthly debt service for the project's outstanding mortgage.
If you have any questions about cash flows or loans for real estate projects, contact 415 Group at 415group.com