How to Underwrite a Real Estate Investment - Part 1

Make sure your under writing skills enhance, not detract from your forward momentum. A cap rate is a percentage calculated by dividing the n oi, or net operating income, by the purchase price. This allows you to compare various potential real estate investment opportunities in a more apples do apples fashion. We've been a part of now 16 deals as of this recording. Not one of those was a true in place ten cap.