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Podcast: Mortgage Note Investing Weekly
Episode: EP90: The Importance of Understanding a Cash on Cash Return
Description: In this episode, we discuss the importance of a cash-on-cash return. Breaking down how cash on cash returns work in note investing.Rick explains how a cash-on-cash return can slightly differ regarding real estate investing and note investing. In note investing, cash-on-cash return is calculated as the annual cash flow from the investment divided by the initial cash invested in the note. The resulting percentage represents the return on the cash invested in the investment property or note.Cash-on-cash return is crucial because it gives you a quick way to determine whether purchasing a...