Tag Archive for: debt coverage ratio

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Estimating Capitalization Rates – Part III

In the first two parts of this series, we have introduced and defined four different methods of estimating capitalization rates. In this part of the series, we will take a detailed look at market-derivation methods and the factors that should…
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Supporting Capitalization Rates – Part II

In the first part of this series we talked about the importance of accurately estimating the capitalization rate within a direct capitalization analysis and briefly introduced four common methods used to estimate a capitalization rate (OAR).…
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Supporting Capitalization Rates – Part I

The Income Approach is the main approach to value when appraising a property that is purchased for its income producing ability. This series will take a look at one of the key components of the direct capitalization analysis, a common technique…