capital recycling
How much of the cash put into a deal comes back out on exit, and how much stays trapped in the property.
A deal returning 100% of deployed cash lets the same money do the next one. A deal returning 68% means a third of it is stuck, and the next purchase needs new money rather than the same money again.
It is the figure that separates a portfolio that compounds from one that stalls at four properties, and it is invisible in any appraisal that stops at profit.
Where this comes up
- The Deal Score, and why it is computed after tax
Nine weighted components, each carrying its own reasoning, scored on profit after tax and capped by hard gates. A pre-tax score flatters every deal, and…
- The exit matrix: a position, not a bet
Sell, refinance and hold, rent, or assign — every way out of a property costed side by side and after tax. A deal with one exit is a bet on that exit; a deal…