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Risk Spread Premium
Risk Spread Premium
I just read a short article from a real estate guru. He was talking about the “Risk Spread Premium” on real estate Capitalization (CAP) Rates compared to the 10-year US Treasury bond.
His basic assertion is to compare the difference (spread) between the average CAP rate of income properties to the yield on the [...]
Posted in Real Estate Investing, Time Value of Money, Wealth Creation
Tagged bond, cap, capitalization, cash, debt, equity, expense, flow, income, interest, premium, real estate, risk, spread
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