Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

Sean Ross is a strategic adviser at 1031x.com, Investopedia contributor, and the founder and manager of Free Lances Ltd. Thomas J. Brock is a CFA and CPA with more than 20 years of experience in ...

Investing in real estate can be a tricky prospect, so it makes sense to try to determine how profitable a given property is likely to be. That's where the capitalization rate comes into play. The ...

Overall rate of return is a ratio between an investment's first-year return divided by its cost. In other words, it's an investment's first-year return on investment (ROI). For real estate investors, ...

In the apartment investing industry, our return on investment, assuming we purchase the building in full with cash, is known as a capitalization rate, more commonly known as the cap rate. A cap rate ...

Capitalization rates are used in valuations to convert income streams into value. They are present value factors applied to a single representative year's income or cash flow that represents a company ...

SANTA ANA, Calif.--(BUSINESS WIRE)--First American Financial Corporation (NYSE: FAF), the premier provider of title, settlement and risk solutions for real estate transactions and the leader in the ...

The equity capitalization rate is an important concept in commercial real estate. It also is one of most commonly misunderstood and misused terms in the real estate industry, according to Ray Alcorn, ...