How to Calculate the Capitalization Rate
By Bruce Firestone | Entrepreneurship , Finance , Investing , PB4L , Real Estate , Real Estate Investment Coaching , Urban Economics
The Cap Rate Most real estate professionals do not use IRR, internal rate of return, calculations—they use cap (capitalization) rates to compare one project with another. The cap rate is an approximate assessment of ROI, return on investment, as all financial measures are anyway. But they are more approximate than the IRR is, in my […]