4nnnn / re-investment-terms-notebook

RE Investment Terms - Intro

In order to be able to propely asses RE investments, it's crucial to have a good understanding of some basic investment terms.

For example, given the right conditions from a loaner, by calculating Cash-on-cash instead of Cap Rate, we can sometimes come to a conclusion that we can make a much better return on the investment if we make a smaller down payment by using leverage.

In this notebook we'll survey the most common ones, from simple to more complex:

• NOI (net operating income)
• Cap Rate (capitalization rate)
• Cash-on-cash
• NPV (net present value)
• IRR (internal rate of return)