Hassle-free Cashflow Minuter Lesson 5: Cap Rate Introduction

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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

description

David Campbell, professional real estate investor, teaches how to calculate and analyze the capitalization rate on a property.

Transcript of Hassle-free Cashflow Minuter Lesson 5: Cap Rate Introduction

Page 1: Hassle-free Cashflow Minuter Lesson 5:  Cap Rate Introduction

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