Cap Rate, or capitalization rate, is a popular calculation used by real estate investors. Using Capitalization Rate, an investor can:

1. Determine the expected net operating income based on the property’s listed price as compared to other similar properties sold recently.
2. Calculate the price you should offer for a property based on the prevailing cap rates in the area and the net rental income of the property being considered.
3. Using the value/asking price and the net income of a property, you can determine its cap rate and compare that to prevailing rates in the area.

The April 9th Conference Call has been completed and was another great call! Please feel free to leave feedback here about the call!

Craigslist is the small real estate investor’s dream come true. It is ideal place to find investment properties, materials for renovating properties, and even sell your renovated properties. Millions of people search Craigslist daily. Best of all, it’s completely free to list items for sale, and you can list items all over the world. All you need is a Craigslist marketing plan.

When real estate was appreciating at a rapid rate everywhere, new investment “experts” were popping up left and right. And, this being America, there seems to be a need to come up with a newer and better mousetrap to prove value. The problem comes when the fundamentals of investment are ignored or replaced by so-called sophisticated strategies that multiply risk to achieve dubious rewards.