Real Estate Investment Terms CAP RATE

Real_Estate_Investment_Terms_CAP_RATE Hello, this is Joan Wilson. Today, we want to define the term CAP Rate is short for capitalization rate. The CAP Rate is a rate of return used to derive the capital value of an income stream. The formula is: Value equals annual income divided by capitalization rate. Here's an example: the estimated NET OPERATING INCOME. In an office building is $12,000 per year. An appraiser decides the appropriate capitalization rate is 12%, comprised of a 10% return on investment and 2% for depreciation. The estimated value of the building is $100,000. If you know someone interested in buying or selling, please give them my name and phone number. I will be happy to help them. Thank you for allowing me to help you with your real estate needs. Let me know if I can help you in any way! It is my Goal to Increase the Success and Profitability of Those I Serve Thank you again, Let me know if I can help you in any way! Give me a call today and I will help you find the perfect place for you. Joan Wilson (Realtor, SRES, Ecobroker, Certified REO and Short Sale/HAFA Specialist) California Cool 4 Sale Sotheby"s Direct Phone: 760-757-3468 Fax: 760-946-7894 License # 01341483

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