Description

In today's video, we're going to be talking about capitalization rate, also known as cap rate. Capitalization rate or cap rate is a number that is incredibly important in real estate investing, particularly for a sponsor, because it defines or can define the value of a building. The way that cap rate is calculated is by taking the net operating income and dividing that number by the cost of the building. For the ultimate guide to real estate crowdfunding and syndication, subscribe now to the FREE GowerCrowd newsletter: https://bit.ly/3jRnlTv | Visit the GowerCrowd website, the most complete source of free real estate syndication and investing resources and training available anywhere: https://bit.ly/2VMA7ea | Are you a real estate developer? Read the new book, SYNDICATE and learn how to find more investors so you can raise more money: https://bit.ly/3jRUM8r | Are you a real estate investor? Watch this free webcast and discover the Hidden Secrets to Success in Real Estate Investing: https://bit.ly/2VJMcAN