What is band of investment?
A cap rate built by weighting each capital source’s current income requirement by its share of the stack: Cap Rate = LTV × Mortgage Constant + Equity Share × Equity Dividend Rate. Useful when comparable sales are limited.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.