Cap Rates Are Fake (mostly)

Cap rates… the be all, end all of commercial real estate analysis. This simple little calculation is considered oh so important.

Net Operating Income / Total Price of Property = Cash Flow

Well, unfortunately, cap rates are fake. OK fakeish. For internal analysis, sure, they’re helpful. But for comparing and analyzing different commercial properties, there’s just too much blurriness for them to give a great picture of what’s going on. In this video, we explain why cap rates are, for the most part, fake.

Click here to see the whole video!

For more, please subscribe to our YouTube channel.

Also, check out Andrew’s Substack: https://andrewsyrios.substack.com/

--

--

--

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Save Money this Holiday Season with New Deals from Edison Mail

5 Easy Ways To Reduce Your Monthly Expenses

Four things that make a good dividend stock

Should I file for bankruptcy, consolidate debt or get on a debt management plan?

How to Save Effectively

Coins, saving

Position Sizing In Trading: How Much To Bet?

Tick Tock, Tick Tock, Tick Tock

10 Common Money Rules

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Andrew Syrios

Andrew Syrios

More from Medium

Leading Percussionist drums up 3 concerts for Inspired by Bragg.

Cedar Key

Intimacy and vulnerability both require risk; social and emotional exposure to our innermost fears…

Reflection on Roman Numeral converter Kata