Who's Buying 4-5 Cap Properties?

[Sanjeev Advani]

My question is simple: Who is buying these 4 cap and 5 cap properties?  I know its someone because they are being sold... quickly.  But who? 

[Russell Brazil]

Me.

Some people see cap rates as reflective of the return of the property, and that is simply not the case. Does a 4% cap rate return less than a 10% cap rate? Not typically actually. Cap rate is a reflection of risk, as well as often the market pricing in rent growth and appreciation of the asset. Lower cap rates are indicative of a lower risk asset and higher cap rates are indicative of higher risk assets.