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Building Contractor

Real Estate Investor – Getting Rich Without Hassles

Property investors in Canada surely love their businesses, don’t you think? They seem to work 10 hours a week, have plenty of time for their friends and family, and also have money on hand at all times. So, is it really that easy to become a real estate investor? Well, not exactly. In order to become a investor, you need to have considerable knowledge of market conditions, have an instinct to sniff out properties worthy of your investment, and a foolproof business plan. Only a combination of these three elements guarantees a stable career in real estate investing.
Here are some pointers that should help you get started:
* Gain required knowledge: If you want to become an investor but have little or no knowledge of the property industry, then that is where you will have to start. Begin by enrolling in a real estate investment training course organized by …

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How to Calculate a Capitalization Rate Or Cap Rate

The Capitalization Rate or Cap Rate is a measure of income producing property’s unleveraged interest rate return. The ratio is derived by taking the annual net operating income at the property divided by the property’s value.
Cap Rate = Net Operating Income/Value
EXAMPLE 1 Suppose a property is offered for sale at $3,200,000. The sales broker lists a pro forma NOI of $200,000. The implied cap rate would be the following:
$200,000/$3,200,000 = 0.0625% x 100 = 6.25%
This means that if you purchased the property for $3,200,000 with no debt, and achieved a $200,000 NOI in the first year, you would receive a 6.25% return on your invested equity. The cap rate is a common metric used by brokers, borrowers, lenders and appraisers in real estate. It is easy to understand and a quick metric as to the implied “worth” or “risk” of a property.
One way to understand …