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What is cash on cash return?

Cash on cash return is a metric used in real estate investing to evaluate the profitability of an investment property. It measures the annual return on investment (ROI) based on the amount of cash invested in the property. The formula for calculating cash on cash return is: Cash on Cash Return = Annual Pre-Tax Cash Flow / Total Cash Invested

Is real estate investment safe?

Real estate investment can offer a level of safety and stability, but like any investment, it carries inherent risks. Here are some factors to consider: Market Risks: Real estate markets can be influenced by economic conditions, interest rates, local market dynamics, and demographic trends. Economic downturns or changes in market conditions can impact property values and rental demand.

What is the average holding period?

Average holding period is 3–5 years, sometimes up to 10 years which allows for strategic value appreciation and operational optimization. We focus on enhancing income, managing expenses, and implementing value-added strategies. This aligns with financial goals and risk tolerance, providing clarity on returns and exit strategies.

How can I invest?

Traditional cash investment: Investing after-tax money allows you to take full advantage of the depreciation benefits of owning real estate – without the hassle of becoming a landlord yourself. Self-directed IRA: Consider a self-directed IRA to diversify retirement savings into real estate. By partnering with a custodian, you can roll over a portion of your retirement funds, expanding investment options.

When are the distributions paid?

Distribution timelines vary depending on the nature of each project. Some projects offer distributions at the exit, while others provide quarterly or monthly distributions. We tailor distribution schedules to align with the specific characteristics and objectives of each investment opportunity.