Raise those cap rates!!

[John McKee]

These times are a changing quickly!  the 10 year treasury is creeping up to 4%.  Great Time to negotiate with the sellers!

https://www.cnbc.com/2022/09/2...

[Ronald Rohde]

Quote from @John McKee:

Just got a quote from my banker on a NNN longterm deal at 6%/25 year am, but the cap rate on the property is 5%. I'm having the banker draft this quote in writing so I can show it to the seller. Hopefully they will understand the math and why they need to come down in price.

To play devils' advocate, there are plenty of all cash buyers for solid absolute NNN deals, they are not debt buyers so your arguments may fall on deaf ears. Also factor in rent increases, some buyers will buy negative cash flow for a year or two before swinging positive for 8+ years. My $0.02