ROI & Cap Rates - The Joe Rosen Show: Ep81

If you've ever contemplated investing in real estate, return on investment (ROI) and the capitalization rate (ie cap rate), are two helpful terms that will help guide you to the profits you're looking for.

Joe Rosen is the #1 social media Realtor on Florida’s Treasure Coast. He leads one of the top real estate teams in the market, The Rosen Group, and works alongside 40+ amazing agents in his organization. From his 7,000+ YouTube subscribers to his 29,000+ Instagram followers, Joe is committed to creating and sharing unique and valuable strategies for home buyers, home sellers, real estate agents to succeed.

[Walina]

Joe, you have cap rates completely backwards. Cap rates come from an income approach to VALUE called direct capitalization. If you have 20 comparable assets in the same market they all will sell for about the same cap rate. In a 10% cap rate market each $1` of possible NOI is selling for $10. In a 5% cap market the same NOI dollar is selling for $20, Which one is more profitable? You can't tell from cap rates because ALL they do is tell you what market value is.

[dilandesilvahoteltourism]

Great video. You have resolved one of my greatest confusions