The cash on cash return formula evaluates the cash income generated by an investment property relative to the amount of cash invested by the investor. You can express it as a percentage and it will measure the annual cash return on the total amount of cash invested in a property. The abbreviation for cash on …

Net operating income (NOI) is a financial metric utilized in real estate to assess the income generated from a property after considering all operating expenses, excluding debt service and income taxes. It is calculated by deducting operating expenses from the property’s gross operating income (GOI). Operating expenses encompass property management fees, property taxes, insurance, utilities, …

What are the four main investment strategies in commercial real estate? There are four main investment strategies when evaluating commercial real estate which include Core, Core+, Value-Add and Opportunistic.  When discussing real estate investments I may occasionally reference these strategies as the “Core Four”.  These terms are used in to describe different real estate investment …

What is the capital stack in real estate? The capital stack in real estate refers to the organization, or tiers, of debt or equity contributed to finance a real estate transaction, or a company, organized by their risk-return profile. These tiers are typically organized from lowest risk, senior debt, to highest risk, common equity. It …