Master Real Estate Expressions Transform Property Deals Forever
Key Expressions to Know
In real estate, certain expressions are crucial for interpreting market trends and property values. Terms like "cap rate," "cash flow," and "equity" are fundamental to evaluating investment properties. The cap rate, or capitalization rate, is a key metric used to estimate the return on investment of a property. It is calculated by dividing the property's net operating income by its purchase price. A higher cap rate indicates a potentially higher return, which is essential when searching for profitable investments1.