All Topics / Help Needed! / Calculating CoCR -NO DEPOSIT

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  • Profile photo of geoffcreegeoffcree
    Member
    @geoffcree
    Join Date: 2004
    Post Count: 3

    Just working through Steves new book.

    Im trying to work out how to calculate the CoCR for a property IF I plan to put NO money down in the deal, ie borrow entire purchase amt plus closing costs using current equity in my own properties.

    Q. Can I calculate the CoCR using this method?

    G CREE

    Profile photo of L.A AussieL.A Aussie
    Member
    @l.a-aussie
    Join Date: 2006
    Post Count: 1,488

    I think that if you put NO money into an investment and get a positive return from it, then that is an infinity return.
    The less of your own money you can put in, the better the return figure will be.

    Cheers,
    Marc.
    [email protected]

    Profile photo of rafisrafis
    Member
    @rafis
    Join Date: 2004
    Post Count: 11

    The way I do it is that I use the equity tied up in the deal to calculate my cash on cash return. If you didn’t have your equity in this deal you could use it somewhere else. It gives you a method of comparing 2 deals that have different cash / equity requirements.

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