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What does cash on cash mean?

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

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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.

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