Below is a survey form containing expected results from your investments. Investors gauge the performance of their real estate by various means. Some evaluate their property over a period of time by requiring a certain return on the purchase price of the real estate. This return is the net operating income plus the reversion of the property after a period of time. This would be the overall yield. So that we are on the same page, the following is an explanation of the terms used in our survey.
Overall expected yield
A yield rate is the rate of return on the total capital invested and includes all expected property benefits, including the annual income and the proceeds from the sale of the property.
Expected equity yield
An equity yield rate is a rate of return on equity capital and is the investor's internal rate of return, considering the effects of debt financing. It is the rate of return of the down payment of a property that includes annual net income (before tax cash flow) and equity capture at the time of sale.
Expected equity dividend ratio
An equity dividend ratio or cash on cash return is an income rate that reflects the relationship between a single year's pre-tax cash flow expectancy and the equity investment (down payment)
Capitalization rate
The cap rate is an income rate for a total property that reflects the relationship between a single year's net operating income expectancy and the total property price of value.
Reserve requirement
Reserve is money set aside for capital expenditures such as a new roof or HVAC system. Some investors take this into consideration when setting a sales price and others do not. If you include this in your survey participation, please indicate wether you treat reserves as a percentage of effective gross income (EGI), dollar amount per square foot, dollar amount per unit, etc.
We ask that you fill in the fields for which you gauge your investments and will happily provide interested participants with our results. Fill in the contact information and we will send an electronic version of our survey results.
Investor Survey