Broker Tip of the Month β July 2017July 18, 2017
It is important to remember the capitalization rate is at the discretion of the evaluator. Important factors that determine oneβs rate are location, growth of revenue stream, ability to transfer goodwill and demographics. Lower capitalization rates indicate greater risk to the investor while higher rates are associated with less risk.
Tip by Dr. Dave Davenport and Mr. Nick Elliston
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