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Real Estate Glossary
Use this real estate glossary to research terms you might run across in a real estate transaction.
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Capitalization rateCommonly called the cap rate, the capitalization rate can be used as a division factor to decide the capital value. The net income from an investment divided by the cap rate will equal the capital value, or value. The cap rate is a combination of a return or recapture of the investment and a return on the investment.
 


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