Cap rates lower than interest rates wtf

[Edward Dandrea]

I don’t know if it’s my market or what but I often see mf properties that are boasting around 8% cap rate but the current state of lending is around 8% so there is no cash flow to be had?

Am I missing something?

Is that crappy state of lending at the moment?

Is that the crappy state of pricing at the moment?

Is it just my area? I’m hour north of NYC

I want 10-11 % if my loan cost me 8%

Or

If property caps 8% I want loans at 5%

My last purchase my loan was 4% and cap rate was 14% what’s going on lately?

[Russell Brazil]

The fallacy in your logic is that everyone needs to borrow in order to buy. If you are paying cash, it doesnt matter what interest rates are.