What is a Cap Rate?

Today is going to be our all-encompassing, definitive episode all about on cap rates! What are they? How they are used? What’s the whole deal here? Tune in to find out!

We discuss how they relate to interest rates, what they indicate, what they’re useful for, what they’re used for on a day-to-day basis in real estate investing, and how you should be thinking about cap rates if you’re thinking about getting into the real estate investing world. We also give several examples of how to find the cap rate!

Key Takeaways:

[:11] About today’s episode.

[1:01] What is a cap rate?

[2:59] A quick example of how to find the cap rate and what it indicates.

[4:51] How cap rates relate to interest rates.

[7:52] What cap rates come down to and what’s important to remember.

[10:51] The useful thing about cap rates!

[11:29] How those in real estate use cap rates on a day-to-day basis.

[14:24] A range of where cap rates fall now.

[16:27] How you should be thinking about cap rates if you’re thinking about getting into the real estate investing world.

Mentioned in this Episode:

Cap Rate

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