All Forum Posts by: Jim Growfer

@Michael Le 

@Matt K.

 I still don't understand how Cap Rate even correlates with Cashflow though.  can i have a 5% cap that cash flows better than a 8% cap? 

@Matt K.

wow 3% cap...

Seems to me, that those who purchase A class properties, have so much money that they don't know where to put it so they invest in things like that.

@Bjorn Ahlblad So when a broker asks you what your criteria is, what do you tell them?

I personally am looking to purchase either a class B or class C value add

So A class properties are usually in the 1-4% cap range right?

what should I expect for Class B and C? @Jameson Sullivan 

@Michael Le

thank you michael that helps a lot!

If someone is asking 600k for a building that has a 5% cap rate, 30k NOI and i purchase it at 500k. It wouldnt be 5% anymore, correct?

Cap rate confuses me a little bit, because that cap rate would now be 6% not 5%.  

Where am i wrong?

@Robert Leonard So if the 7% factor as a quick rule of thumb,  anything under a 7% cap wouldnt cash flow, correct? or am i misunderstanding cap rate

@Ellis Hammond i think Evans 70/30 is a lot more fair until i have more expierence

@Dan Cardone yes dan the investor gets the higher %

@Theo Hicks

another great idea theo i like that refinance option!