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Understanding Real Estate Pro Formas

Understanding Real Estate Pro Formas

March 04, 2021

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By EQUITYMULTIPLE Staff
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EQUITYMULTIPLE Staff
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Target average cash yield is calculated by taking the average of a property's projected annual net cash flows, and dividing by the initial equity investment amount.

A “more diversified” portfolio refers to the practice of investing in a wide(r) variety of assets, most commonly in comparison to a traditional portfolio consisting entirely of publicly traded assets.