A cash-on-cash return, also known as a cash yield, is a metric commonly used in commercial real estate investing. It is a rate of return that calculates the cash income earned on cash invested in a property, generally on a pre-tax basis. In real estate transactions, it often measures the annual return the investor received on a property relative to the amount of mortgage paid in the same year.
Unlike the ROI, which measures total growth from the beginning to the end of the investment, the IRR identifies the annual growth rate. Many investors prefer to use the IRR rather than ROI calculations, especially when researching long-term investments.
Over a hundred crowdfunding companies have sprung up since 2012 and many failed in the first five years. Most were unable to build momentum and attract investors or sponsors to their platforms. Others had their reputations damaged by promoting sponsors and investment opportunities that were poorly vetted.
For many investors, cash flow is a big draw. In a world of low-interest rates, it’s hard to find risk-adjusted yield in the form of cash flow from operations. For most categories of real estate, but especially for multi-family, cash flow is a major attraction.
Seattle’s economic growth has resulted in an unprecedented demand for housing which cannot be met easily in this supply-constrained region. With high demand and limited supply comes investment opportunities in the region that are hard to match.
One of the biggest factors that you need to consider and understand when looking at investment portfolio diversification is risk. Risk takes many forms, but in short, it is essentially the likelihood of unexpected losses for any type of investment.
Alternative investments frequently surface as options for investors looking for ways to change their volatility exposure and potentially generate additional returns beyond holding stocks, bonds, and cash. For the right investor, alternative investments can be a compelling choice for building a diversified portfolio.
When considering residential real estate investments, there are two distinct options: single-family and multifamily.
Together with his brother Shawn, CEO, Tom has led the Coast Group from a very modest start in 1987 to a diversified group of commercial real estate services companies offering property management, facilities maintenance, specialized construction, and advisory and transaction services to private and institutional owners throughout the Pacific Northwest the United States.