Tommy DobczykOpportunity Zone Advisor, OZ Wizard · Director of Development | Certified Opportunity Zone Advisor

Price Your Offers: Income & Risk Dictate Your Value! #shorts

30 Jun 2026 · 1 min

Watch on YouTube

0:49

In this short instructional segment, the speaker explains how to determine an offer price for income‑producing real estate by linking the property's annual net income to its capitalization (cap) rate. The core premise is that the offer price equals income divided by the appropriate cap rate, and the cap rate reflects both risk and brand strength. For properties generating about $250,000 in net income, the speaker suggests an offer around $2.3 million rather than $2.8 million, illustrating the calculation. He notes that non‑branded, newer assets typically command double‑digit cap rates, indicating higher perceived risk, while well‑known, nationally accredited brands such as Camping World or KOA campgrounds enjoy low cap rates (6‑7 %), which translate to higher valuations. The overall message is a pragmatic, risk‑adjusted approach to pricing offers based on income and brand‑derived cap rates.

Chapters

But if they're only making $250,000, you're gonna wanna offer less than $280,000, $2.8 million. You're gonna wanna offer close to $2.3 million. Because again, the price is based on the income, and that income dictates what your value cap is gonna be. If they're not a nationally accredited, open for 20 years, Ben Doit, like, if they're not that, they are double-digit cap rate, always and forever. No, because again, the cap rate helps you determine your risk. So if it's under 10%, that means you're dealing with a bigger name brand like Camping World or something like that, or KOA. You got a KOA campground, that's a franchise. They get a 6 or 7% cap rate, right? Because the lower the number, the higher the price.