Hassle-free Cashflow Minuter Lesson 5: Cap Rate Introduction

Hassle-free Cashflow Minute

Investor Educational Series by Professional Investor / Developer

David Campbell

Lesson 5: CAP Rate Introduction

www.HassleFreeCashFlowInvesting.com

CAP Rate = NOI / Purchase Price

AGI - Operating Expenses = NOI

(see lessons 3 and 4 for review)

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.

David Campbell$500 million of real estate

experience

real estate investor / developer houses / apartments

retail / office / land / resortcondos / condo conversion

financial strategist

Real Estate