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Hassle-free Cashflow Minute

              Lesson 5:
        CAP Rate Introduction

        Investor Educational Series by
       Professional Investor / Developer
                David Campbell

    www.HassleFreeCashFlowInvesting.com
                ©2011 All Rights Reserved
CAP Rate = NOI / Purchase Price




    www.HassleFreeCashFlowInvesting.com
AGI - Operating Expenses = NOI

  (see lessons 3 and 4 for review)



     www.HassleFreeCashFlowInvesting.com
Case Study: CAP Rate = NOI / Purchase Price

 5 CAP = $5,000 NOI / $100,000

  Note: CAP is always a percentage.
  When in doubt divide small by big.


       www.HassleFreeCashFlowInvesting.com
David Campbell
              $500 million of real estate
                    experience

            real estate investor / developer
                  houses / apartments
              retail / office / land / resort
              condos / condo conversion
                   financial strategist


www.HassleFreeCashFlowInvesting.com

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Hassle-free Cashflow Minuter Lesson 5: Cap Rate Introduction

  • 1. Hassle-free Cashflow Minute Lesson 5: CAP Rate Introduction Investor Educational Series by Professional Investor / Developer David Campbell www.HassleFreeCashFlowInvesting.com ©2011 All Rights Reserved
  • 2. CAP Rate = NOI / Purchase Price www.HassleFreeCashFlowInvesting.com
  • 3. AGI - Operating Expenses = NOI (see lessons 3 and 4 for review) www.HassleFreeCashFlowInvesting.com
  • 4. Case Study: CAP Rate = NOI / Purchase Price 5 CAP = $5,000 NOI / $100,000 Note: CAP is always a percentage. When in doubt divide small by big. www.HassleFreeCashFlowInvesting.com
  • 5. David Campbell $500 million of real estate experience real estate investor / developer houses / apartments retail / office / land / resort condos / condo conversion financial strategist www.HassleFreeCashFlowInvesting.com