Cap Rates in Real Estate Explained


Manage episode 244556305 series 2486728
By Podcast, Lane Kawaoka, and PE. Discovered by Player FM and our community — copyright is owned by the publisher, not Player FM, and audio is streamed directly from their servers. Hit the Subscribe button to track updates in Player FM, or paste the feed URL into other podcast apps.

Unsophisticated investors buy off cap rates. I don't really look at cap rates when I am purchasing because it is usually manipulated. If the seller or broker leaves out an expense or over counts revenue it greatly distorts the cap. Therefore it is a bad data point. I normally look at the Profit and Loss statement cause that is where you can drill in line by line.

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