The Importance of Cash on Cash Return in Real Estate Deals

When diving into real estate investments, one critical factor to consider is the cash on cash return. This metric is specifically important when purchasing a deal, as it reflects your investment's efficiency in generating cash flow. Ideally, investors aim for a cash on cash return of around 12%.

But how can you achieve this target? One effective strategy is by lowering the assignment fee. For instance, reducing the assignment fee to just 2% can significantly impact your return. This adjustment boosts the cash on cash return and concurrently decreases the entry fee into the deal.

Thus, by strategically managing elements like the assignment fee, BILT emphasizes optimizing investment returns, making smarter financial moves, and enhancing profitability.