Cap Rates and Interest Rates/ What the *%%€*+??

[Christopher J Lemmon]

Can some with long term experience explain how interests and cap rates can be inverted, stay inverted and investors keep making money? 

Here is another way to ask this: 

If it cost me 6.5% to borrow money but the cap rate is only 5%, —— how does it make any sense to buy under those conditions? 

CDs are at 4.5% —- Why is would I ever take on all the risks and headaches to make a mere 5% over 4.5% with zero headaches and zero risks? 

Can this stay with way for very long? What do experts and experienced investors see up ahead with this situation? 

Can anyone help me grasp what is happening and where this market is headed? 

Thanks I’m advance.