Mar 9, 2021 | Blog
“What’s the cap rate?” is the most common first question I’m asked about a new listing by potential investors. Many times (not all the time), there are investors that say they pass on or are interested in a deal based on the answer I give, whether it is 6 cap, 9 cap,...
Jun 17, 2020 | Blog
A capitalization rate, more commonly referred to as a cap rate, is a metric commercial real estate investors use to analyze properties and calculate the rate of return. The cap rate is calculated by dividing the net operating income of the property by the...
Aug 6, 2018 | Blog
By Andy Friedman If I had a nickel for every time I’ve been told by a real estate investor that they will only consider a property with X cap rate or above, well, I’d have a boatload of nickels. There are several problems with using cap rates as your main...