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Ep 17: Koji Bratcher - SME Valuation Concepts [From An Expert]

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How to Calculate an Income Cap Rate

In certain cases, we would just go to the income cap if we could do that. You know, our kind of philosophy is that simple is better. It's easier to explain to people. If you don't need to put together a big complex DCF and, you know, prepare these projections,. like a restaurant, you're going to show that you're growing at some stable growth rate.

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