All Forum Posts by: Account Closed

Oh there's massaging going on.  Just check out the numbers in the Real Estate Marketplace

 All of which could probably result in a successful lawsuit.  

Property taxes are state specific.  If this is in CA then because of Prop 13 properties of the same market value can have drastically different assessments.  You can easily buy a house where the prior owner only paid $500 a year and your purchase will cause a reassessment that can bring your property taxes to $10,000.

If you sell all your in demand NOI's (the lower cap rate properties) then you are left with NOI's that have less demand (the higher cap rate properties). How does that make sense? If you want HIGH cap rates, why would you, all you have o do is buy in low demand crappy areas.

You are chasing a number because you do not realize what it actually represents.

The higher the cap rate the LESS the market is willing to pay for the NOI. The market is perceiving that those properties will be more PROFITABLE. Profit is what you should be shopping for.

Your link has the guy saying, "The higher the cap rate, the better the annual rate of return."  The only reason the cap rate is higher is because the purchase price is LOWER!  Why would the market sell for LESS if the annual return is higher???  Think about that.  See, it makes no sense whatsoever.

1.  I am not arguing with you.  I am trying to educate you.

2.  E=mc2 is also a formula but like a cap rate it represents a much more complicated concept.

3.  You state, "It's the price you pay for an asset vs the net anual returns."  This is incorrect. It is the price paid for NOI. NOI is net operating income.

4.  $2,000,000 homes ANYWHERE are not sold for $300,000 unless grandma owns and you are the only or favorite grandson.

5. If your NOI is $120,000 and you can only sell it for $300,000 at a 40% cap rate then the market is saying the NOI is crap.

6. Since the cap rate is the result of NOI divided by price then since the price paid is the result of market demand then it follows that there is a direct link between cap rate and DEMAND.

Any questions?

 https://support.woundedwarriorproject.org/default....

Sure hope this guy doesn't need a place to live in your town. 

 https://support.woundedwarriorproject.org/default....

Sure hope this guy doesn't need a place to live in your town. 

No Brett you are the one using cap rates on SFR's not me. I merely used the cap rates that you are incorrectly using on SFR's. You were claiming a cap rate would tell you when to sell. My example shows how that does not work EVEN if the cap rates YOU stated were on commercial properties.

There is no use for cap rates on SFR's period. And if you were using cap rates on commercial properties as you described you are not accomplishing what you think.

 Brett you have learned cap rates backwards. 

A cap rate measures the value of a NOI for commercial properties. The MORE demand for the NOI the lower the cap rate.

$10,000 NOI at 5% market cap rate is worth $200,000.

$10,000 NOI at 10% market cap rate is worth $100,000.

Now if both your properties had $10,000 NOI then the one in the 8% market is worth $125,000.

The 10.5% cap rate market the exact same NOI could only get you $95,238!

Now as an investor you need to figure out WHY the market will pay $30,000 MORE for the opportunity to possibly collect the EXACT SAME NOI !!

Any questions?

If he had only held onto his property! 

http://www.bing.com/videos/search?q=hitler+on+sub+...

Strategic foreclosure my *ss!