Dr. Jairo Borja, DBA’s Post

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Networking Coach. I help coaches/consultants elevate their business through networking in 90 days. Schedule a free strategy session in the “About” section.

Wondering How to Calculate a Cash on Cash Return? 📊💵 Cash on cash return (CoC) is a powerful metric for real estate investors, showing how much cash you earn relative to the cash invested. Think of it as your “cash yield,” helping you gauge whether a deal is worth the risk. The formula is simple yet revealing: Annual Net Cash Flow ÷ Invested Equity = Cash on Cash Return For example, if you put $2.7 million into a deal that generates $1.2 million in revenue but costs $750,000 in expenses, your cash on cash return would be 16.7%. 🏢✨ Why does this matter? A solid CoC return signals strong profitability and can help guide investment decisions across all property types, from multifamily to commercial real estate. Unlike cap rate, CoC factors in leverage, making it ideal for deals involving financing. Understanding this return can sharpen your investment strategies, keeping your portfolio diverse and your returns promising. Looking to grow your knowledge and diversify? Follow me for more insights that turn numbers into opportunities! 📈🔥 👉 Visit: https://lnkd.in/ePn5dyAT #RaisingPrivateMoney #BorjaConsultingGroup #InvestmentStrategy #FinancialFreedom #BigDealMakerMastermind #RealEstateInvestor #DrBShow #TransformingYourWayToSuccess #networking #entrepreneur

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