Plain-English definitions for the terms you'll encounter on your financial journey.
Cap Rate (Capitalization Rate) — A percentage that shows the potential return on a real estate investment if you bought it with cash. It’s a quick way for landlords to compare different rental properties to see which one might make more profit.
A metric used to estimate the potential rate of return on an investment property, calculated by dividing the net operating income by the property's asset value. It helps investors quickly compare the relative profitability of different real estate opportunities.