The Wealth Elevator

Cap Rates in Real Estate Explained

10.16.2019 - By Lane Kawaoka, PEPlay

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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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