
REI180: The Intersection of Education and Real Estate w/ Kevin Clark
The Intrinsic Value Podcast - The Investor’s Podcast Network
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The Four Components of Cap Rates
A cap rate is a measure of or it ought to be a measure of risk. It's one reason why cap rates in a dense market like Los Angeles or New York City should be lower than a less dense tertiary market like Columbus, Ohio or Allentown. There are four things that make it up but what does that really mean? Nudge Stone: You've got to essentially underwrite a higher cap rate when you're buying real estate.
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