CalculateRealEstateROI

Wealth

Velocity of Money

Rate at which capital recycles through deals — faster recycling beats higher per-deal returns over a 10-year horizon.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Core concepts

Recycle cadence

BRRRR recycling 3x in 5 years > one-time 50% return.

Deployment lag

Each month of idle capital reduces compounding velocity.

Examples

  • $100k recycled 3x in 7 years → $400k controlled equity vs $150k one-time.

Practical applications

  • BRRRR operators.
  • Capital-efficient scaling.

Common mistakes

  • Optimizing per-deal IRR while leaving capital idle.
  • Premature deployment of returned capital.