Cash on Cash Return | Measurement for Calculating Asset Cash Flow

Franchising & Real Estate | Second Life Method Podcast FRE | 2LM

Cash on Cash Return | Measurement for Calculating Asset Cash Flow

1 nov 2024 · 13 min. 29 sec.

Descrizione

Many investors’ North Star is this cash on cash (COC) return measurement of investment. COC is a static measure. It’s simpler to calculate and takes into account fewer factors than...

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Many investors’ North Star is this cash on cash (COC) return measurement of investment. COC is a static measure. It’s simpler to calculate and takes into account fewer factors than IRR (Internal Rate of Return). With the election on the horizon and some changes happening in the country, these measurements will or should become very important to you over the next couple of months. Static measure is a measurement that doesn’t take into account time.

Static measurement 1:30
Doesn’t take into account tax rate 3:45
Getting the best return you can 8:30

“A static measure in mathematics means it’s a measurement that does not account for the passage of time, one where the measured quantities are always constant or changing very slowly. Investors love to run this measurement because it gives them a picture of how much they’re going to make on a rental today.” 1:30

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