Yield on Equity: The Metric Nobody Tracks (But Should)
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Yield on Equity: The Metric Nobody Tracks (But Should)
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Cash-on-Cash Return may tell you how a deal performed when you bought it — but Yield on Equity tells you how your capital is performing today.
In this episode of Beyond IRR, we examine why many real estate investors unknowingly allow capital to become trapped in underperforming assets as equity grows over time. Through practical examples, we break down the difference between Cash-on-Cash Return and Yield on Equity, how appreciation can quietly compress capital efficiency, and why institutional investors actively monitor this metric when making hold, refinance, and disposition decisions.
We also explore how Yield on Equity fits into BHPA’s broader framework for analyzing durability, efficiency, and portfolio optimization.
Because over long investment horizons, return on capital matters just as much as return of capital.
BHPA - https://bhpropertyadvisors.com/