{"id":25974,"date":"2020-05-04T00:43:06","date_gmt":"2020-05-04T07:43:06","guid":{"rendered":"https:\/\/www.rowanfinancial.com\/?p=25974"},"modified":"2020-05-22T08:15:08","modified_gmt":"2020-05-22T15:15:08","slug":"the-real-returns-on-your-real-estate-investments","status":"publish","type":"post","link":"https:\/\/www.rowanfinancial.com\/2020\/05\/the-real-returns-on-your-real-estate-investments\/","title":{"rendered":"The REAL Returns on Your Real Estate Investments"},"content":{"rendered":"\n<figure><iframe loading=\"lazy\" width=\"560\" height=\"315\" src=\"https:\/\/www.youtube.com\/embed\/TX5V4i6NO6Q\" allowfullscreen=\"\"><\/iframe><\/figure>\n\n\n\n<\/br>\n\n\n\n<p>Investors and those looking to become investors need to know what makes a good real estate deal. There are three ways to look at your returns: Cap rate, levered return and tax-adjusted levered return.<\/p>\n\n\n\n<p>The <strong>cap rate <\/strong>or Capitalization Rate is a percentage found by dividing the Net Operating Income by the Current Market Value.<\/p>\n\n\n\n<p>The <strong>levered return <\/strong>is the return you make when factoring debt service. You can take out a mortgage to offset. Your levered return is the free cash flow divided by the cost to acquire the real estate.<\/p>\n\n\n\n<p>The <strong>tax-adjusted levered return <\/strong>factors in the taxes and property depreciation. The tax-adjusted free cash flow divided by the cost to acquire yields the tax-adjusted levered return.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investors and those looking to become investors need to know what makes a good real estate deal. There are three ways to look at your returns: Cap rate, levered return and tax-adjusted levered return. The cap rate or Capitalization Rate is a percentage found by dividing the Net Operating Income by the Current Market Value.&hellip;<\/p>\n","protected":false},"author":4,"featured_media":26032,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"none","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[177],"tags":[197,196,195,194],"_links":{"self":[{"href":"https:\/\/www.rowanfinancial.com\/wp-json\/wp\/v2\/posts\/25974"}],"collection":[{"href":"https:\/\/www.rowanfinancial.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.rowanfinancial.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.rowanfinancial.com\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.rowanfinancial.com\/wp-json\/wp\/v2\/comments?post=25974"}],"version-history":[{"count":0,"href":"https:\/\/www.rowanfinancial.com\/wp-json\/wp\/v2\/posts\/25974\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.rowanfinancial.com\/wp-json\/wp\/v2\/media\/26032"}],"wp:attachment":[{"href":"https:\/\/www.rowanfinancial.com\/wp-json\/wp\/v2\/media?parent=25974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.rowanfinancial.com\/wp-json\/wp\/v2\/categories?post=25974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.rowanfinancial.com\/wp-json\/wp\/v2\/tags?post=25974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}