Investing in income-generating real estate involves market data and a degree of subjectivity. One of the most important assumptions that a real estate investor must make when valuing properties is choosing an appropriate capitalization rate, which is the required rate of return on real estate, net of value appreciation or depreciation. Put simply, it is the rate that is applied to net operating income, to determine the present value of a property.
Read more...3 Ways To Value Real Estate Investments via Investopedia
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