How to Determine the Value of Commercial Real Estate Investments
Everyone’s heard of cash on cash returns, but there are other ways to determine how successful a real estate investment is.
Today, I’m going to show you How To Calculate Commercial Real Estate Investment Returns using my three go-to calculations:
Cash on Cash
Internal Rate of Return
and Return on Equity, which is where many investors miss out.
If you’re investing in commercial real estate, you’re probably looking for a return on your capital. And one of the most attractive aspects of having commercial real estate investments is that you can receive monthly dividends through cash flow while hopefully gaining appreciation on the property. But you need to have a concrete method to be able to determine which investment you should take on next or how your current portfolio has performed after acquisition.
About Your Host:
Tyler Cauble, Founder & President of The Cauble Group, is a commercial real estate broker and investor based in East Nashville. He’s the best selling author of Open for Business: The Insider’s Guide to Leasing Commercial Real Estate and has focused his career on serving commercial real estate investors as a board member for the Real Estate Investors of Nashville.
In an upcoming discussion with Jacob Kromhout, my project manager from Bentwood Construction, we'll share the latest construction updates at Salt Ranch, my boutique hotel in East Nashville.