Not exact matches
If the fund's name includes the term, it means the fund's managers or sponsors feel they can enhance
returns and / or reduce the risks of their funds by switching back and forth among stocks, bonds and
cash equivalents, often using a so - called «black box,» a computer program that makes trading decisions based
on a pre-selected set of
rules for interpreting financial statistics.
This is a handy
rule that states that you can expect a nominal
return of 10 % from equities, 5 %
return from bonds and 3 %
return on highly liquid
cash and
cash - like accounts.
In the first half of today's video, I break down the 2 %
rule to show what cap rate and
cash on cash return you are looking at if you are lucky enough to get a 2 % deal.
If you were to leverage your money through the bank 25 % down you'd be looking at a leverage rate of 16.6 %
cash on cash return based off 50 %
rule.
You can find 1 %
rule properties in the midwest, that won't suffer catastrophic market collapses, that generates 8 - 12 %
cash on cash returns, with the potential for 3 - 4 % long term capital appreciation that you can lever up
on.