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What is Cap Rate and Why Does it Matter? 
What is Cap Rate and Why Does it Matter? 

By Norm Spivey, Author of Collect Rent, Don't Pay It!: A Beginner's Guide to Rental Property Investing   Ask ten investors “What is Cap Rate?”, and you’re likely to get ten different answers! I’ll provide the definition I use, as it relates to rental properties. Capitalization or Cap rate as it is often called is simply the net income (rent after subtracting all expenses) divided by the value of the asset and expressed as a percentage. For instance, if annual net rental income for a property is $10000 and the property is valued at $100000 then the cap rate is 10%. This is the “math” often used when a buyer is looking at a property to determine if the investment... Read more

How Interest Rates Hikes Have Changed the...

Rising interest rates in 2022 thus far have had the most significant negative impact on the single-family housing market. Housing prices have cooled and transactions...

How to Beat the Recession and Inflation Using...

By Brian Sacks, Author of The Real Estate Loophole  We all know that rents are rising and so are interest rates. Home prices, however, seem to be moderating, or even...

To Form an LLC or Not

By Norm Spivey, Author of Collect Rent, Don't Pay It!: A Beginner's Guide to Rental Property Investing  Should the “amateur” real estate investor form a...

How BFR Underwriting Differs from Multifamily

Industry experts acknowledge there are some mild similarities and share the nuances in their calculations. To state the obvious, the booming build-for-rent market is...

Rate Hikes Alter Single-Family Strategies For...
Rate Hikes Alter Single-Family Strategies For...

The recent increase in interest rates is forcing institutions and investors to reassess growth strategies in the single-family rental market, according to a report from Yardi Matrix. “With home sales cooling as rising mortgage rates bump up against soaring property values, institutional single-family rental property companies are adjusting growth strategies and facing the prospect of lower total returns,” the report says. Growth in the near future, however, may be concentrated on build-to-rent projects, which are being delivered at record levels. Institutional Ownership Of Single-Family Rentals Institutions’ growth is currently focused on build-to-rent projects or acquiring... Read more

Training the Next Generation of Young Developers

By Bob Voelker, author of Mastering the Complexities of Real Estate Development  New developers come into the real estate development field in a variety of ways...

Calling All Bargain Hunters: 4 Items That Are...

Whether you’re a homebuyer or a home seller, you’ll end up a home negotiator at some point in the process. The transactional nature of real estate exchanges means...

Are we in a recession?

There’s been a lot of talk these days about whether the US economy is in a recession or not. And this has been muddied by the fact that the White House recently made...

Mortgages Up to $715,000 May Not Be ‘Jumbo’...

If you’re in the market for a pricy house, you may now be able to borrow up to $715,000 without the extra costs incurred by oversized “jumbo” loans.  Multiple...