Answers » Categories » Real Estate & Property

What does cash on cash mean?

investor says he is looking for 15% cash on cash investment or return on his money


0
1 Report

1 Answer
0 
Cash on cash refers to the amount of return an investor receives on the cash invested. So your investor wants 15 % return. It is calculated by dividing the cash income by the total amount invested.

This measure is often used in real estate transactions, when the investor purchases a rental property. The investor may pay only 10% as a cash down payment. Cash-on-cash return is calculated by dividing the annual return on the property in relation to the down payment.
Nov 14th, 2011 at 1:05 PM
Reply

Answer this question

by Anonymous - Already have an account? Login now!
Your Name:

Your Answer:
Source(s): (optional)

Enter the text you see in the image below
What do you see?
Can't read the image? View a new one.
Your answer will appear after being approved.

Ask your own question

Ask a Question

Categories