Most real estate investors rely on cap rates. That’s a mistake.
In this Strategy Saturday episode, Charles Carillo introduces a powerful underwriting tool that experienced investors use to avoid bad deals: Yield on Cost.
You'll learn:
What Yield on Cost (YOC) actually is
How it's different from cap rate
When and how to use it in your underwriting
What makes a “good” YOC spread
How YOC helps you evaluate risk and make smarter offers
Whether you're analyzing your first deal or scaling your multifamily portfolio, this episode will help you apply short-term, data-driven thinking to your investment strategy.
🔑 Key Takeaways:
YOC vs Cap Rate: Why cap rate can mislead you
The formula to calculate YOC properly
Why a strong spread between YOC and market cap rate matters
When to adjust the spread based on market type and renovation risk
How to use YOC as a quick deal filter, even in off-market scenarios
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Connect with the Global Investors Show, Charles Carillo and Harborside Partners:
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http://ScheduleCharles.com
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◾ FREE Passive Investing Guide: http://www.HSPguide.com
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◾ Passively Invest in Real Estate: http://www.InvestHSP.com
◾ Global Investors Web Page: http://GlobalInvestorsPodcast.com/
