hassle-free cashflow minuter lesson 5: cap rate introduction
DESCRIPTION
David Campbell, professional real estate investor, teaches how to calculate and analyze the capitalization rate on a property.TRANSCRIPT
Hassle-free Cashflow Minute
Investor Educational Series by Professional Investor / Developer
David Campbell
www.HassleFreeCashFlowInvesting.com©2011 All Rights Reserved
Lesson 5: CAP Rate Introduction
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CAP Rate = NOI / Purchase Price
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AGI - Operating Expenses = NOI
(see lessons 3 and 4 for review)
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Case Study: CAP Rate = NOI / Purchase Price
5 CAP = $5,000 NOI / $100,000
Note: CAP is always a percentage. When in doubt divide small by big.
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David Campbell$500 million of real estate
experience
real estate investor / developer houses / apartments
retail / office / land / resortcondos / condo conversion
financial strategist