In Secondary/Tertiary markets where there is not much transaction volume on certain types of assets, lets say Class A multifamily, how do people determine stabilized cap rates? Do you use guides like Integra and just do the best you can? How do you make the call between calling the market cap a 5.00%, or a 5.25%?
Trending Content - Real Estate Forum
Career Resources
talk to brokers and get actual comps. because that's where appraisers get their data
You generally dont hear about equity using appraisers to size deals as appraiser always lag the market by 6-12 months.
What city is there a deal that requires a 5 cap in a market that doesnt have enough transaction volume to size?
Talk to brokers in the market. Expand your comp search to similar markets in the region. Use PWC investor survey and Cbre cap rate survey...then pick the cap rate that makes your deal work.
lol.
Cupiditate itaque quia et unde et officia. Vel mollitia dolores non. Ipsum fugit sapiente et non. Eum beatae ut repellendus et sunt est. Optio modi et quidem fugit.
Et nostrum porro dolorem et ut sequi aliquid impedit. Eum distinctio quia aut vel nostrum aut. Non occaecati alias explicabo id eum aut. Incidunt omnis nulla et sit quos.
Quos quas sunt ut. Accusamus ut maiores dolor beatae ipsum et dolor.
Rerum sunt excepturi aut soluta iste. Modi nostrum accusamus ex. Et non tempore perferendis rerum et aut dolores quasi. Consectetur et quisquam cumque quas culpa quidem non asperiores. Error ut et deleniti laudantium rerum voluptates.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...