Skip to content
Two gentlemen converse about this month's real estate transactions while sitting in a meeting room

Rate of Return Analysis

Strategies that support you.

Is your real estate investment generating a positive rate of return? BeachFleischman’s advisors know that sound investment decisions require a thorough understanding of the potential return on that investment. Through rate of return analysis, we help real estate owners and investors determine projected cash flow and return on investment of potential or current investments.

Do I need a rate of return analysis?

When you evaluate a commercial or residential property, whether for business purposes or as an investment property, knowing the projected rate of return on that potential investment before making that initial capital contribution can help you make a stronger decision.

Rate of return analysis also can be valuable at various points throughout the lifecycle of a real estate project. Is it generating positive returns that outpace other potential investments? Or are tax liabilities and management company expenses eating into those returns?

If you are ready to sell your real estate interest, a rate of return analysis can provide vital information to help you find the right buyer and close on the transaction.

Work with an experienced accounting firm

For active real estate owners and investors, rate of return analysis involves complex calculations. Investors who will be making recurring outlays of cash need rate of return calculations for each capital contribution over the life of the investment, taking into account inflation adjustments and the time value of money.

Tax implications should also be considered when determining the return on an investment. If you qualify as a real estate professional, has your accountant quantified your available losses and explained how you can use them to your advantage? Do you know how those losses will impact your rate of return?

By considering all of the factors that influence the rate of return—from initial and recurring outlays of capital to the time value of money—BeachFleischman’s real estate advisors provide investors with insight to build a strong portfolio of commercial and residential properties.

Insights

Partner with our real estate advisors!

If you are considering investing in real estate or want to evaluate the rate of return on a current investment, let’s talk!

Contact us