EP025 The Simple Way to Understand Cap Rates

Published: July 4, 2016, 5 a.m.

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Instead of posting an interview on this Holiday Monday, I thought I'd take this opportunity to talk about a key financial ratio that you'll hear a lot from brokers and investors, but may not completely understand.\\xa0 I'm referring to the Capitalization Rate, or Cap Rate as its commonly called.

This won't be a technical discussion that will make your eyes glaze over.\\xa0 Instead I'll share with you my simple explanation that I teach in my advanced financial analysis course through the RPOA.

Happy 4th of July!

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