CFJV INVESTMENTS LLC
ORLANDO, FLORIDA

In the above formula “gains from investment”, refers to the proceeds obtained from selling the investment of interest. Return on investment is a very popular metric because of its versatility and simplicity. That is, if an investment does not have a positive ROI, or if there are other opportunities with a higher ROI, then the investment should be not be undertaken. An asset is anything of value that can be converted into cash. Assets are owned by individuals, businesses and governments. Examples of assets include: Time Value Assets sells tax deed properties IRV is a formula that allows us to evaluate in different formats the potential investment we are looking at in the moment. We can understand the CAP Rate, (most of you’ve heard this one bantered about in the Social Groups), but we can also evaluate the yield we seek, or the CASH-ON-CASH Return we might make given a certain estimated profit. There are several, which we will cover below. There are other considerations as to whether a specific CAP Rate is good for you. Are you Buyer, or are you the Seller? As a Buyer you may want a higher CAP, as a Seller a lower CAP is almost always better. It comes down tot he fact that the CAP Rate is the cost of the asset We have a building we are evaluating that we’re told has a NOI of $10,000 (annually). The owner is asking $100,000. Using the formula we can ascertain that the CAP Rate on this property is 10%. In other words after we have paid out expenses (EBIT) we will have $10,000 left to pay our Real Property Tax Bill and Interest on the loan (if one was taken out, it can also be Principal and Interest, depending on the loan). So in order to pay our “ What we really want to know is how much will this property cost for that 12% CAP Rate. So start with; Income = $10,000, we want a 12% CAP, so then we enter .12, we then solve for the answer. Take out your calculator – now enter – 10000 then the division sign – now enter .12 (be sure to enter the decimal point) – now press the equal or solve button and you will get the answer of $83,333.33. So which would be better for you? See how it depends on if you are the buyer or seller? Now you next job is to compare other buildings in the area to see what their CAP Rates are reflecting. This will help you to determine if the seller is asking too much for their property or not. Time Value Assets sells tax deed properties IRV is a formula that allows us to evaluate in different formats the potential investment we are looking at in the moment. We can understand the CAP Rate, (most of you’ve heard this one bantered about in the Social Groups), but we can also evaluate the yield we seek, or the CASH-ON-CASH Return we might make given a certain estimated profit. There are several, which we will cover below. There are other considerations as to whether a specific CAP Rate is good for you. Are you Buyer, or are you the Seller? As a Buyer you may want a higher CAP, as a Seller a lower CAP is almost always better. It comes down tot he fact that the CAP Rate is the cost of the asset We have a building we are evaluating that we’re told has a NOI of $10,000 (annually). The owner is asking $100,000. Using the formula we can ascertain that the CAP Rate on this property is 10%. In other words after we have paid out expenses (EBIT) we will have $10,000 left to pay our Real Property Tax Bill and Interest on the loan (if one was taken out, it can also be Principal and Interest, depending on the loan). So in order to pay our “ What we really want to know is how much will this property cost for that 12% CAP Rate. So start with; Income = $10,000, we want a 12% CAP, so then we enter .12, we then solve for the answer. Take out your calculator – now enter – 10000 then the division sign – now enter .12 (be sure to enter the decimal point) – now press the equal or solve button and you will get the answer of $83,333.33. So which would be better for you? See how it depends on if you are the buyer or seller? Now you next job is to compare other buildings in the area to see what their CAP Rates are reflecting. This will help you to determine if the seller is asking too much for their property or not. Time Value Assets sells tax deed properties IRV is a formula that allows us to evaluate in different formats the potential investment we are looking at in the moment. We can understand the CAP Rate, (most of you’ve heard this one bantered about in the Social Groups), but we can also evaluate the yield we seek, or the CASH-ON-CASH Return we might make given a certain estimated profit. There are several, which we will cover below. There are other considerations as to whether a specific CAP Rate is good for you. Are you Buyer, or are you the Seller? As a Buyer you may want a higher CAP, as a Seller a lower CAP is almost always better. It comes down tot he fact that the CAP Rate is the cost of the asset We have a building we are evaluating that we’re told has a NOI of $10,000 (annually). The owner is asking $100,000. Using the formula we can ascertain that the CAP Rate on this property is 10%. In other words after we have paid out expenses (EBIT) we will have $10,000 left to pay our Real Property Tax Bill and Interest on the loan (if one was taken out, it can also be Principal and Interest, depending on the loan). So in order to pay our “ What we really want to know is how much will this property cost for that 12% CAP Rate. So start with; Income = $10,000, we want a 12% CAP, so then we enter .12, we then solve for the answer. Take out your calculator – now enter – 10000 then the division sign – now enter .12 (be sure to enter the decimal point) – now press the equal or solve button and you will get the answer of $83,333.33. So which would be better for you? See how it depends on if you are the buyer or seller? Now you next job is to compare other buildings in the area to see what their CAP Rates are reflecting. This will help you to determine if the seller is asking too much for their property or not.