Are you wanting to get into the real estate game but don't know any of the lingo? Parse through this plethora of lessons where you will learn the meaning and specific application of dozens of real estate terms taught by the incredibly successful Michael Burer.
Featured Coaching Excerpt - Notes & Transcript, Part 1
Lesson Nugget: Cash-on-cash rate is the cash proceeds of your investment divided by the initial equity investment.
Lesson Nugget: Cash-on-cash rate allows potential investors to evaluate how fast they would be able to produce profit in one investment as opposed to another.
Cash-On-Cash Rate: A return measure that is calculated as cash flow before taxes divided by the initial equity investment.
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-Hola. My name is Clay Clark and I'm joined here today with Michael on Thrive15.com, an alternative to Lynda.com . There is no real estate topic too obscure. We're within about what, about 30 miles of Mexico?
-SanDiego. Got a beautiful view back there. If you're curious as to where we are, we're at the Hotel Del. And sure, we could be at the San Diego Zoo. We could be at a Parades game, but we've chosen to be here talking about cash-on-cash rate for you.
Now Michael, I'm going to read the definition, and then if you can go ahead and bring an ample example that the Thrivers can handle, I would appreciate if you could do so. Real clarity. A return measure that is calculated as cash flow before taxes divided by the initial equity investment. Can you sift through all of the audio clutter and tell us what exactly cash-on-cash rate means?
-Cash-on-cash is the cash proceeds that the investment is producing divided by your initial investment or the amount of money you put into the project from the beginning.
-At what point as an investor do you start to talk about this kind of stuff right here, this cash-on-cash rate? Is this something that is brought up a lot when you're trying to get funding?
-Definitely when you get funding, when you're evaluating the investment. What kind of return am I going to get on the project? You would look at the cash-on-cash to evaluate this investment versus an alternative investment.
-And I just want you to know I am looking at you. I just haven't been outside in about a year, and my eyes don't process the sun's rays very well.
-It is bright in sunny San Diego.
-Now, I was at one of our Thrivers-- he got married recently-- I was at his wedding, and I was at his wedding, and he was coming down the aisle, and this idea came to me, and I want to read to you what came to me at the wedding.
-Let's hear it.
-Michael, I appreciate you, but even with 17 sub-orbital satellites I couldn't communicate the magnitude of how much I appreciate you if I tried.