The capitalization rate, or cap rate, is the required or expected rate of return on a property. It can be calculated as is a property’s annual net operating income (NOI) divided by its current value:   Cap Rate = NOI / Current Value   For a new or renovated property, it can be extrapolated from Read More…

When you decide to participate in a real-estate project, you will be faced with all sorts of figures and calculations. One important number to be aware of the is the origination fee on your loan, because it affects the calculation of your annual percentage rate (APR) and the amount of interest you ultimately will have Read More…

A real estate investment trust (REIT) is a form of collective ownership, similar to a mutual fund, in which a corporation offers securities representing an asset base of real estate properties. REITs can own residential and commercial property. Publicly traded REIT shares are sold on exchanges, whereas other types of REITs are offered via private Read More…