Ep 61: Tejas Explains Cap Rates
Learn how to figure out what will happen with your investment over time. If you understand the property, you would have an educated risk with your investment. In this episode, Tejas will explain what cap rate means and why it is important to know as an investor.
Cap rate, expressed as a percentage, is an estimation of an investor's potential return on a real estate investment. The cap rate is the most popular measure through which real estate investments are assessed for their profitability and return potential. Listen now to learn more!
💥💥 Remember, this is your MBA. Have a notepad handy, and get ready to take some 📝 notes!
Key Points from This Episode:
The reasons for purchasing a property with a low cap rate.
How to analyze data.
How to add value to your property.
A sample computation of cap rate for a five-unit property.
The importance of property managers.
Factoring in vacancy.
How to create equity.
How to start out with a 10% purchase at $500,000 to selling at an 8% cap rate for a million dollars.
Tweetables:
“As a commercial real estate agent, you can't believe everything you read.” – Tejas Gosai
“Projections are anyone's best guess” – Tejas Gosai
“Property management is the make or break on whether or not you will be successful in the long run for this business.” – Tejas Gosai
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