I am working to learn how to assign contracts. Can someone explain to me better the difference between a buyer who is motivated by equity and a buyer who is motivated by cash on cash return?
I believe that someone who you've described as an 'equity buyer' would be someone who is buying either for equity at the time of purchase (priced well below the FMV...so instant equity) or someone who is looking for a high appreciation potential (but doesn't necessarily cash flow). A 'cash on cash return buyer' is looking for something that cash flows monthly very well, but may or may not necessarily increase in value during the hold period.
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