cap rate
Commercial Real Estate by Joey Wang | November 16, 2011 
In Part I and II of Techniques to Speed Up Your Decision Making, we covered two basic measurements to quickly estimate value of an apartment property. These two were: Price per Unit Gross Rent Multiplier (GRM) We learned that Price Per Unit is the simplest to calculate but provides little investment insight because income is [...]
Read the full article → Real Estate Investing by Jeff Brown | March 8, 2011The #1 rule governing baseball pitchers is — throw strikes. If they can’t do that consistently, they can have Nolan Ryan’s fastball, Sandy Koufax’s curveball, and a change-up that’d make Trevor Hoffman cry, and they’ll never make it in The Bigs. This truism was hammered home to me as a college umpire. There are a [...]
Commercial Real Estate by Khary Reynolds | August 9, 2010 
This is my first post on The BiggerPockets Blog and I just want to state that in my opinion, investing in commercial real estate is a better investment than investing in residential real estate. Now, we all know that real estate in general is a great investment vehicle and both residential and commercial properties can [...]
Read the full article → Real Estate Investing by J Scott | July 21, 2010My last post discussed how to analyze the financials of an income-producing property. In that post, I discussed a bit about Cap Rate and how to calculate it. But, I didn’t spend a lot of time discussing why it’s such an important metric. In this post, I’ll try to do that… Let’s say you were [...]
Real Estate Investing by J Scott | June 30, 2010Have you ever wondered what a Pro-Forma or a Cap Rate is? Are you trying to figure out what NOI means? Do you want to know how to calculate the various types of ROI, like Cash-on-Cash Return and Total Return? If yes, then read on… We get a lot of posts on the BiggerPockets forums [...]
Real Estate Investing by J Scott | June 24, 2010While most of my active real estate efforts go towards rehabbing/flipping houses, I’m a huge fan of investing in apartments. I’ve done some passive investing in the past (invested in other people’s projects) and am always on the looking for great apartment deals to add to my portfolio. Why do I love apartment investing so [...]
Real Estate Investing by Jeff Brown | February 23, 2010Read almost any real estate investment book and there’ll be a chapter or two paying homage to the almighty capitalization rate — cap rate. First, let’s ensure we’re all on the same page here. What is a cap rate anyway? Fairly simple and straightforward — it’s the percentage resulting from your Net Operating Income (NOI) [...]
Commercial Real Estate by Ted Karsch | March 3, 2008Determining the value of an apartment building investment is one of the greatest difficulties that many new commercial real estate investors face. Most people who invest in apartments have some experience investing in other types of real estate, typically residential homes or duplexes and triplexes. The issue that new investors face is the fact that [...]
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Joshua Dorkin
