Yield on Cost -- a metric for real estate investors and developers
I had a question recently about a metric called Yield on Cost, aka Return on Cost and also sometimes called Development Yield. So what is it and when and how might it be useful?  One way to think about Yield on Cost is as a forward looking cap rate. In this video I discuss what it means, how it's used, how it's different from regular cap rate -- and, of course, provide some examples. [https://youtu.be/pT71mV74w5g](https://youtu.be/pT71mV74w5g)
[{"id": "hi70byj", "text": "Would also chime in and say that ROC, and the spread above cap rate is also one of the most critical decision making tools for speculative development, not just value add deals.", "replies": [], "depth": 1}]