Cash is the medium of exchange that is used to pay for goods and services. It is typically referred to as any form of liquid asset that will readily be accepted in return for goods or services. Cash typically refers to paper bills, since that form of currency is the most common throughout the world, but it can also be used as a way to refer to the value of a property or that property’s annual return yield in terms of a real estate investment. It’s also used to describe to investors how the value of a property will change in time, or how much money it will bring in. For instance if someone invests by buying a piece of real estate and that patch increases from $100,000 to $250,000 in five years, then the investor can turn a profit. Alternatively if someone invests $200,000 in a property, and that property yields $30,000 a year in profits, then that individual knows how long it will take to earn back the initial investment and to start making additional money over and above what was paid. So while actual Cash money isn’t used often in real estate purchases because of the amount of Cash that would be necessary (checks are more common), the idea of Cash is what describes the value of any property investment.

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