Most real estate investors rely on cap rates. That’s a mistake.

In this Strategy Saturday episode, Charles Carillo introduces a powerful underwriting tool that experienced investors use to avoid bad deals: Yield on Cost.

You'll learn:

What Yield on Cost (YOC) actually is

How it's different from cap rate

When and how to use it in your underwriting

What makes a “good” YOC spread

How YOC helps you evaluate risk and make smarter offers

Whether you're analyzing your first deal or scaling your multifamily portfolio, this episode will help you apply short-term, data-driven thinking to your investment strategy.

🔑 Key Takeaways:

YOC vs Cap Rate: Why cap rate can mislead you

The formula to calculate YOC properly

Why a strong spread between YOC and market cap rate matters

When to adjust the spread based on market type and renovation risk

How to use YOC as a quick deal filter, even in off-market scenarios

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Connect with the Global Investors Show, Charles Carillo and Harborside Partners:

◾ Setup a FREE 30 Minute Strategy Call with Charles:

◾ Learn How To Invest In Real Estate: https://www.SyndicationSuperstars.com/