Valuation & Analysis

Most commonly expressed as a number followed by an "x" (e.g. 2.3x), Equity Multiple is defined as the total pre-tax levered cash flow that a project produces (including disposition) divided by the total equity invested in that project, i.e. the sum...

Various fees and expenses payable at the closing of a real estate transaction. Examples of closing costs include: brokerage commissions, title insurance premiums, and attorney's fees. Closing Costs in CashFlow:

Expressed as a percentage, a property's cash-on-cash return is an investment's cash flow before taxes divided by the equity invested in the project. In other words - the annual return that the actual cash invested into a deal will produce.   ...

Also called Cap Rate. The unlevered return that a property produces upon purchase without taking into account any non-recurring expenses. For example, if a property is expected to produce $10 of  NOI , and was purchased for $100 - the property...

Expressed as a percentage, an investment's IRR, or internal rate of return, is a measure of the return on each dollar invested for each period that that dollar is invested. Additionally, the IRR is the discount rate that drives an investment's net...