If youb re not familiar with the term capitalization rate youb re not alone. However, if youb re thinking about investing in commercial real estate b even as a partner in a group b itb s a term you need to become familiar with. Youb ll also need to understand how to estimate potential capitalization rate if youb re going to make a worthwhile profit on your Florida commercial real estate investment.
Capitalization rate is the expected rate of return on a property based on the expected income the property will generate.
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