Capitalization Rate, more commonly referred to as Cap Rate, is the rate of return on a real estate investment based on the income the property is expected to generate. In other words, the Capitalization Rate is used to estimate an investor’s likely return on investment in a property if the property is purchased with cash. Capitalization Rate is used commonly to compare potential real estate investments and may also be used to compare potential businesses for sale.





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Share your small business tips with the community!
Share your small business tips with the community!
Share your small business tips with the community!