All Forum Posts by: Fletcher Clardy

I love the reference to the weather @John Corey. We definitely cant ignore it, nor do we have any control over it but with sound research we can determine the anticipated cap rate based on the market.

Thanks for your input

@Account Closed thank you for your input. We typically try to use the same appraiser for our local investments, this way we understand the process and typically can guess what rate will be determined.

When working in our Southeast markets we tend to do more due diligence to select an appraiser since some investors will use cap rate to determine the value.

@Brian Burke Thanks for the added enlightenment. I will consider this as I continue to underwrite and evaluate potential deals.

I appreciate all the feedback provided. Aaron K I agree with you in regards to the sell of the asset. The property value increases based on rent increasing due to the value-add aspect for sure.

I also often see seller cap rates not accurately represented once I sit down and crunch the numbers.

Its also interesting to me when I speak with Family offices and UHNWI, some do not include cap rate in their investment criteria and when we discuss further I have been told it is not a credible number to them.

As a value-add investor, cap rate is not a main focus of ours when evaluating an exit.

We do not control the market and neighborhood cap rates when investing in multi-family. We can still manipulate the NOI based on our underwriting, but no control over the cap rate.

How important is cap rate to you? Do you use it? Does it matter?

If cap rates are important I would love to know how the rate factors in your underwriting and how it assist in your overall evaluation.

@Scott Mac I agree that it depends on the person also. I also believe it is important to add value every opportunity you get when building new relationships.

Thanks @Curt Davis still trying to figure this system out.

Today we had a consultant meeting at 10AM. The individual we sat down with did not present a clear plan or structure of how he wanted the meeting to flow. Honestly still not sure what his goal was for having the meeting.

My question to you is.

How important is it to have a plan with questions ready when meeting with potential investors? Also how should you prepare?

Today we had a consultant meeting at 10AM. The individual we sat down with did not present a clear plan or structure of how he wanted the meeting to flow. Honestly still not sure what his goal was for having the meeting.

My question to you is.

How important is it to have a plan with questions ready when meeting with potential investors? Also how should you prepare?

Today we had a consultant meeting at 10AM. The individual we sat down with did not present a clear plan or structure of how he wanted the meeting to flow. Honestly still not sure what his goal was for having the meeting.

My question to you is. 

How important is it to have a plan with questions ready when meeting with potential investors? Also how should you prepare?