eLendDirect.com
Cap Rate Calculator
Fixed Rate
Starting at 5.0%
25 Year Max Term
Min 650 Credit Score
Blanket/Collateral OK
$500k & Up
Urban/Suburban Areas
Points and loan fees wrapped in loan
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Hard Money
Starting at 9.99%
No Prepayment Penalty
1-3 Year Term
65% Max LTV
Interest Only
$500k & Up
Blanket Loans
Points and loan fees included in loan
> Hard Money Bridge Loan
Cap Rate or Capitalization Rate is determined by dividing the Annual Net Operating Income (NOI) by the Purchase Price (Value). The higher the Cap rate, the better the investment for the buyer. The lower the Cap Rate, the better the investment for the seller. A higher Cap Rate will bring a lower selling price (good for the buyer). A lower Cap Rate will bring a higher selling price (good for the seller). Commercial and investment real estate is often sold based on Cap Rates at which comparable properties are selling in markets or submarkets, specific to certain property types. For example, the going Cap Rate in Seattle for apartment buildings may be 6%, while the going Cap Rate in Seattle for single-tenant retail propeties may be 7.5%.
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