High bank loan rate 10.5% in high growth market (15 - 20%)

[Jay Mani]

This is speculative. But would you do a deal where 80% LTV @10.5% for 15 years.
The property is in a high growth international market - 15% annually. No cashflow since this would be under-construction.

How should i evaluate such opportunities - cash on cash?

[Bill Gulley]

While I agree in concept with J. Scott, projecting pro forams over 15 years is very inaccurate to form an investment decission in RE.

"High Growth International Market" sets off my BS meter, just what is that, a new island in a duty free zone?

10.5% from a bank? What bank, what country?

Here is my point, financial analysis should consider not only the investment return but also the return of capital, the economic use of funds, alternative investments, cash flow at some point and risks associated with the transaction. None of these can be addressed without alot of information

Sounds risky to me, sounds like you're a seed investor in something you are not familiar with. I suggest you run away not walk.

Secod time you have asked about analysis on this deal, if you have to ask how to evaluate it, it probably isn't something you should get involved with.

Now, that said, if this is something like a finance class problem lets state some parameters, exit strategies, time to construct and place in service, industry served, general location as to population, economic base, % of the deal, collateral security involved and market expectations. Otherwise we're shooting in the dark. :)