#26 - Decoding Yield on Cost: Interpreting Numbers and Assessing Investment Risks and Returns

Passive Income Pilots

Today on Passive Income Pilots, Tait and Ryan dive into the concept of "yield on cost," highlighting its importance in evaluating investment returns. They provide a comprehensive guide on interpreting yield on cost numbers to help listeners make informed investment decisions. The episode covers common pitfalls during the lease-up period and offers strategies to mitigate risks and protect investments. Additionally, Tait and Ryan tackle the stigma surrounding development deals, debunking misconceptions and emphasizing the lucrative opportunities these projects can offer. Enjoy the show!

Timestamped Show Notes

(00:00) Intro

(01:44) Understanding the risk spectrum in investments

(03:14) What is yield on cost and why it matters

(09:57) How to interpret yield on cost numbers effectively

(12:28) Two ways investors can lose money during a lease-up period

(14:59) Key factors in evaluating investment deals

(16:28) The stigma around development deals and addressing misconceptions

(19:56) Outro

Related Episode

#15 - Why Commercial Real Estate Trumps Residential

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Legal Disclaimer

The content of this podcast is provided solely for educational and informational purposes. The views and opinions expressed are those of the hosts, Tait Duryea and Ryan Gibson, and do not reflect those of any organization they are associated with, including Turbine Capital or Spartan Investment Group. The opinions of our guests are their own and should not be construed as financial advice. This podcast does not offer tax, legal, or investment advice. Listeners are advised to consult with their own legal or financial counsel and to conduct their own due diligence before making any financial decisions. The hosts, Tait Duryea and Ryan Gibson, do not necessarily endorse the views of the guests featured on the podcast, nor have the guests been comprehensively vetted by the hosts. Under no circumstances should any material presented in this podcast be used or considered as an offer to sell, or a solicitation of any offer to buy, an interest in any investment. Any potential offer or solicitation will be made exclusively through a Confidential Private Offering Memorandum related to the specific investment. Access to detailed information about the investments discussed is restricted to individuals who qualify as accredited investors under the Securities Act of 1933, as amended. Listeners are responsible for their own investment decisions and are encouraged to seek professional advice before investing.