Cash Flow, Resale, and Reversion Analysis

Cash-flow and reversion pages cover investor return measures that depend on holding-period cash flow, resale proceeds, tax effects, and terminal value assumptions.

In this section

• Cash Flow and Equity Yield Analysis
  Real estate finance terms for after-tax cash flow, equity yield, cash-on-cash return, and recapture rates.
  • After-Tax Cash Flow: Comprehensive Guide to Understanding
    An in-depth look at after-tax cash flow in real estate, including its calculation, significance, and implications for investors.
  • After-Tax Equity Yield: What the Equity Investor Actually Keeps
    Learn what after-tax equity yield measures, why leverage and tax treatment matter, and how it differs from pretax yield, cap rate, and ordinary equity-return comparisons.
  • Cash-on-Cash Return: Measuring Annual Cash Yield on Cash Invested
    Learn what cash-on-cash return measures, how financing changes it, and why it differs from cap rate in real-estate investing.
  • Financial Management Rate of Return (FMRR): A Real-Estate Return Metric Built to Improve on IRR
    Learn what FMRR measures, why real-estate analysts use it, and how it differs from ordinary IRR and MIRR.
  • Recapture Rate: Rate of Recovery of an Investment in a Wasting Asset
    Comprehensive understanding of the Recapture Rate in appraisal, including its methods, calculations, and relevance in deriving the Capitalization Rate.
• Resale, Reversion, and Proceeds
  Real estate valuation terms for resale prices, reversionary value, projection periods, and after-tax resale proceeds.
  • After-Tax Proceeds from Resale: Your Net Earnings Post-Transaction
    Comprehensive explanation of after-tax proceeds from resale, describing the final amount left for the investor after all transaction costs and personal income taxes.
  • Projection Period: A Key Concept in Financial Analysis
    Understanding the time duration for estimating future cash flows and resale proceeds from an investment, significantly impacting discounted cash flow analysis.
  • Resale Price: Assumed Selling Price at the End of Projection Period
    Resale Price refers to the anticipated selling price of a property at the end of a specified projection period, commonly used in investment performance projections.
  • Resale Proceeds: Definition and Explanation
    Resale proceeds are the amount a former owner receives upon a sale after paying transaction costs, remaining debt, and sometimes income taxes.
  • Revaluation Clause: Understanding Its Role in Contracts
    A revaluation clause is a provision in a lease or contract that allows for the periodic revaluation of rent or price adjustments, often based on market conditions or other predefined criteria.
  • Reversionary Value: Estimated Property Value at Future Date
    An in-depth exploration and explanation of reversionary value, a crucial concept in real estate finance, which refers to the estimated value of a property at the expiration of a specific time period.