Houtan HormozianExpert on Real Estate, Finance and PropTech

CRESTICO | Can You Get This Real Estate Question Right?

27 May 2026 · 1 min

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This content was created by Houtan Hormozian. This content was uploaded by Houtan Hormozian. This is a YouTube video titled "CRESTICO | Can You Get This Real Estate Question Right?" (posted 2026-05-27). It is a short educational clip in which a single host (Speaker A) poses a multiple-choice question about the capitalization rate under the income approach to valuing real estate, gives the correct answer (B: rate of return a property earns as an investment), and briefly explains the income approach (NPV of expected future cash flows and capitalization of earnings). The host also encourages viewer engagement (likes, tags, messages, website).

Chapters

Get ready for question of the day. Which of these best describes the capitalization rate under the income approach to estimating the value of real estate? A. Rate of capital required to keep a property operating most efficiently. B. Rate of return a property earns as an investment. C. Maximum rate of return allowed by law on an investment. D. Rate at which a property increases in value. The answer is letter B. The income approach is a method of determining the value of a of an organization by calculating the net present value, or NPV, of expected future profits or cash flows. The capitalization of earnings estimate is determined by taking the entity's future earnings and dividing them by the capitalization rate. Learned something new? Give us a like, tag a friend, and let's keep the conversation going. Message us here or visit our website.