Pick the right jockey

Qualifying a Sponsor lies within the larger picture of a passive investors’ overall portfolio allocation strategy. By that I mean before rushing off to vet Sponsors, consider how you want to allocate your portfolio (paper securities v. physicals) and then for the physical portion think how you want to divide up the rest of your…

Other commonly used return metrics

Let’s cover off two other private real estate return metrics, after looking at IRR from our last blog: 1. Cash-on-Cash Return The formula for CoC = (Annual net cashflow, before income tax) / (Total Cash Invested). CoC is usually represented in percentage. In the case of residential scenario, it would be a fraction where the…