IMPUTED EQUITY RETURNS ON REAL ESTATE FINANCED WITH LIFE INSURANCE COMPANY LOANS.

This paper has added to the small body of data on rates of return on equity investment in real estate by combining data on insurance company loans over $100,000 with assumed values of parameters for the equity investor. The returns which result are computed before and after financing and before and after tax. The purpose of this paper was to present the equity returns rather than to editorialize on the adequacy of the rates. In this regard the paper concludes with the reminder that the rates of return are hypothetical since they are based on assumptions and not on historical analysis of realized returns by actual investors. With this in mind, it is hoped that the return relationships will be of use in investment research and planning. [ABSTRACT FROM AUTHOR]