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Updated 2 days ago on . Most recent reply

Arthur Schwartz's profile image
Arthur Schwartz's profile image
Arthur Schwartz
  • Investor
  • Member since Jul 6, 2019
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151
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46
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Arthur Schwartz's profile image
Arthur Schwartz's profile image
Arthur Schwartz
  • Investor
  • Member since Jul 6, 2019
Connect
Arthur Schwartz
  • Investor
46
Votes |
151
Posts
Commercial Real Estate Investing

Cap rate versus interest rate

Arthur Schwartz
  • Investor
Posted

Quick question: if the cap rate is 6% hypothetically, that is what would be received for an all cash purchase; correct? So if mortgage interest rates exceed cap rates, then the total return would be less regardless of the LTV, correct? Thanks, in advance, for the discussion!

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