Understanding CAP Rate and ROI (MP4 video)

This video explains the difference between capitalization rate and return on investment, two important metrics used to evaluate real estate deals. It covers how cap rate measures a property’s earning potential based on net operating income and market value, while ROI measures the investor’s actual return based on cash invested, financing costs, and deal structure.

By sharing this video, you can help investors understand when to use cap rate for comparing properties and when to use ROI for evaluating personal investment performance. It gives clients a practical framework for reviewing deals more carefully, avoiding misleading assumptions, and making better portfolio decisions.

This video is provided in an editable MP4 format, in landscape layout, allowing you to add your own branding, disclaimer language, and contact information. Video length is approximately 1:50 minutes.

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