This optional input page enables you to select and set targets for the investment criteria that matter most to your goals. Each criterion is optional and can be tailored to help you evaluate potential deals based on your desired profitability metrics.
Key Fields:
Total Profit: Set your target for the total profit you expect to achieve from the investment. You can choose this criterion if profit is a primary focus.
Monthly Cash Flow: Input your desired monthly cash flow from the property. Select this if ongoing cash flow is an important factor in your investment strategy.
Cash on Cash Return: Enter your target percentage for Cash on Cash Return. This metric reflects the annual return on the cash invested, with >5% suggested. This criterion is optional but useful for measuring yearly performance.
Equity Multiple (EMx): Specify your target equity multiple. This measures the total cash return over the life of the investment relative to the amount of equity invested.
Internal Rate of Return (IRR): Set a target IRR, which reflects the annualized rate of return on your investment. A typical target is >12%, but you can adjust this based on your preferences.
Customizing Your Analysis:
You can select and customize any combination of these criteria. By defining the targets that align with your investment strategy, Cactus will use these metrics to evaluate and filter potential deals, ensuring they meet your financial goals.
Once your targets are set, continue to assess the deal's alignment with your investment objectives.