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Have you ever heard someone say "I won't take less than a 12% return" or something like it? Of course, you have, because it's pretty standard practice in real estate to do that. If you're doing …
Continue Reading about How to Calculate Risk-Adjusted Returns in Real Estate →
You've rented an apartment out for an entire year and now the tenant is moving out. They leave, and it sits empty for two weeks before another tenant moves in. So, you have roughly 4% vacancy, …
Continue Reading about How to Calculate Economic Vacancy (vs physical vacancy) →
Real estate may be the only industry that uses the term "cash on cash return." It's an odd way of calculating returns but it is quick and easy to use. If you've read any real estate book, blog post, …
Continue Reading about What is Cash on Cash Return and How to Use It? →
The capitalization rate, also called the cap rate, is a fundamental technique used for calculating the value in commercial real estate. Cap Rate Definition: Capitalization rates, or just cap …
If you've spent more than a few minutes learning about real estate, you've probably heard the "gross rent multiplier" tossed around a few times. By the end of this article, you'll know exactly what …
Continue Reading about How to Calculate Gross Rent Multiplier →
