What is the technical term for the actual money you make on an RE investment?
April 22, 2010 8:38 AM Subscribe
Real estate term. What is the technical term for the actual money you make on an RE investment? capital multiple? investment multiple? return multiple? Not IRR,the actual return.
It depends on what exactly you are looking to measure, but one metric that could be useful is MOIC (multiple of invested capital). MOIC basically takes your total inflows over an investment holding period (distributions, proceeds from sale) (say $20) and divides it by your initial investment and any incremental investments over the holding period (say, $5 in total)--in this example, you're MOIC would be 4x. Not sure if this is what you're looking for, though.
posted by arm426 at 8:51 AM on April 22, 2010
posted by arm426 at 8:51 AM on April 22, 2010
You can also refer to the return as the investment's yield.
posted by dfriedman at 10:21 AM on April 22, 2010
posted by dfriedman at 10:21 AM on April 22, 2010
The actual sum itself of any money made over and above your initial investment is almost always referred to as capital gain. After that I'd go with what arm426 said.
posted by empatterson at 5:46 PM on April 22, 2010
posted by empatterson at 5:46 PM on April 22, 2010
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Profit?
Capital Gain?
Although none of these are exclusively real estate terms.
Maybe you are referring to the Cap Rate?
posted by yoyoceramic at 8:48 AM on April 22, 2010