REI180: The Intersection of Education and Real Estate w/ Kevin Clark
The Intrinsic Value Podcast - The Investor’s Podcast Network
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How to Calculate a Cap Rate
A cap rate is the income on any asset that has some type of income. If you put $100,000 into a bond and you're getting $5,000 a year from that bond, that's a 5% cap rate. Same thing in real estate. The only difference with real estate is you're projecting out what you believe the income is going to be for the next 12 months because you don't own it yet.
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