Word of the Week: Cash-on-Cash Return An investment - TopicsExpress



          

Word of the Week: Cash-on-Cash Return An investment offering’s “cash-on-cash” (COC) is the cash income received by an investor in return for the cash invested. COC reflects an investments net income after accounting for the cost of servicing the debt utilized. It differs from “cap rate,” which represents the annual net operating income received from an investment (prior to and excluding debt cost), divided by its purchase price or fair market value. Cap rate does not reflect the potential impact that financing can have on the cash flow. It is important to look at both metrics when evaluating an investment.
Posted on: Fri, 17 Jan 2014 18:03:31 +0000

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