# @lifeaccordingtotodd on Instagram

- **Type:** Video
- **Original URL:** https://www.instagram.com/p/DZxpTUCuOHL
- **Gondola URL:** https://gondola.cc/posts/67020934-lifeaccordingtotodd-instagram
- **Thumbnail:** https://img.gondola.cc/tr:w-,h-,fo-auto/postThumbnails/51cfa262e3.jpg
- **Posted:** 2026-06-19T17:24:36.000+00:00
- **Account Owner:** Todd Nepola (@lifeaccordingtotodd) — https://gondola.cc/lifeaccordingtotodd

## Caption

A cap rate is your rate of return on a property. Buy a building with $700,000 in net income for $10 million, and you have a 7% cap rate. Borrow that money at 5%, and you capture the 2% spread.

But do not forget the loan principal. That payment eats into your return faster than most people expect. A 7% cap rate does not always mean a 7% return. Know the difference before you close.

#RealEstateInvesting #CommercialRealEstate #CapRate #WealthBuilding #InvestingTips

## Stats

- **Views:** 3,902
- **Likes:** 382
- **Shares:** 0
- **Comments:** 19

## Tags

wealthbuilding, investingtips, commercialrealestate, realestateinvesting, caprate

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