What is Cap Rate (Capitalization Rate)? | REAL-ESTATE-SALESPERSON Exam Prep

Cap rate is a real estate investment metric calculated by dividing a property's Net Operating Income (NOI) by its current market value or purchase price, expressed as a percentage to evaluate potential return. 📚 Learn more about Cap Rate (Capitalization Rate) and other key terms for your REAL-ESTATE-SALESPERSON exam at Open Exam Prep. 🎯 This term appears on: REAL-ESTATE-SALESPERSON 🔗 Full glossary: https://www.open-exam-prep.com/glossary 🔗 Cap Rate (Capitalization Rate) definition: https://www.open-exam-prep.com/glossary/cap-rate 💡 Exam Tip: Cap Rate = NOI / Value. Higher cap rate = higher risk/return. NOI excludes mortgage payments. Know how to calculate value from cap rate! --- #real-estate #examprep #financeexam #real-estate-salesperson