Wednesday, November 22, 2006

Why the Name "Cash on Cash?"

I had a couple of people email me privately the past few days and ask why I call this blog, "Cash on Cash." The simple answer is that this is a common term used in investment real estate. As an investor, your "Cash on Cash Return" equals your net operating income, minus debt service, divided by equity invested. It is, in other words, the annual cash flow that an equity investor receives. Questions? Drop me a line and I'll explain in more detail!

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