Poll: Yield on Cost calc
Been in this game for some time and still seeing 2 different camps when it comes to the yield on cost calc. Do you include financing costs in the denominator or not?
NOI = $9
Land + hard + soft = $90
Interest reserve + operating deficit = $10
Do you say YOC is 9 / 90 = 10% or 9 / 100 = 9%?
The logic behind both makes very good sense. So it's more about consistency. How do you people do it?