When investing in multi-family real estate, understanding capitalization rate, usually referred to as CAP rate, is crucial for making informed decisions. This rate serves as a benchmark for evaluating ...
The relationship between capitalization rates and interest rates is more nuanced than first meets the eye. While nominal interest rates have an impact on real estate values, they do not have the same ...
Conventional wisdom has long said: where interest rates go, cap rates soon follow. In other words, when the cost of capital is high, so too is the ratio of a property’s net operating income to its ...