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Updated over 11 years ago on . Most recent reply

Account Closed
  • Salt Lake City, UT
2
Votes |
43
Posts

ROI versus cash on cash

Account Closed
  • Salt Lake City, UT
Posted

I am looking at various investment opportunities including syndicates, limited partnerships and other sorts of deals to join. It would be ideal to be able to compare apples to apples, but it doesn't seem to be working out that way. Some deals discuss an IRR estimate, others speak about preferred cash returns and then capital appreciation. If I was a math guru, I could probably plug capital appreciation estimates and CoC estimates into a formula and figure out IRR, but my calculus skills aren't that good. Does anyone have a suggestion regarding how to figure this out? I looked through my book by Frank Gallielli but couldn't figure out the answer to this.

Thanks,

Jeffrey Kovnick

Most Popular Reply

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Franklin Romine
  • Visalia-Fresno, CA
863
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1,843
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Franklin Romine
  • Visalia-Fresno, CA
Replied

Cash on cash return is what I use...

Monthly Cashflow x 12 / Dowpayment(or total cash in the deal) = Cash on Cash return.

I like to see any where from 15% to 25%. I have a few that are inifinite because I did a cash out refinance and have no money in the deal.

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