What Smart Investors Should Know About Real Estate Cap Rates

What Smart Investors Should Know About Real Estate Cap Rates

Do Cap Rates really matter in multi-family real estate investing? Why do I need to know about Cap Rates?

The real answer is that sometimes they do matter and sometimes they don’t. You absolutely must understand real estate Cap Rates because if you don’t, they can negatively affect your investment and even cause you to lose a lot of money. I’m not sure about you, but if something could potentially cause me to lose money, then you can rest assured that I will make sure I really understand it.

Let’s start by explaining what a real estate Cap Rate is and how it affects value...

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