Percentage of borrower’s cash contribution that comes back to the borrower as profit amortized over twelve months. Let’s assume you’ve invested $30,000 into a transaction. You sold your property after 12 months and walked away from a closing table with $40,000 in your pocket. $30,000 covers your initial contribution and $10,0oo is the profit you’ve made on investing this $30,000 for 12 months. 10K is roughly one-third of the $30K you’ve invested which means you’ve annualized return on cash is 33%. If you reduce that holding period from 12 months to 6 months, the annualized return on cash goes up to 78%.