“Your cap rate is a pretty simple math equation although at best it’s usually an estimate.” -Christina Suter
Today I am taking the time to review what a cap rate is and how to use both a cap rate and interest rate in real estate. There are many formulas out there to help you calculate your rates and that is fine. The only thing that is truly necessary is that your interest rates are not higher or even a half point higher than your cap rates. In this episode I compile what I think are the main points to understanding when dealing with cap rates.
Topics Covered in this episode:
- Review of what are cap rates
- How do the interest rate and cap rate compare in real estate
- What formulas can you use to compare home prices
- When you should refinance your property
- Using cap rates in multi family investing
- What is the difference between a residential loan and a commercial loan
The Real Estate Breakthrough Show with Christina Suter is where we talk about the reality of real estate, the mindset you need and the tips and tricks to get you moving forward in investing. Join us every week and learn everything you need to know to invest in real estate education and create real wealth for a lifetime.
Find our more about Christina here:
LinkedIn Christina Suter