Power of the Cap Rate
There is one thing that sets the multifamily investing business apart from all others. That one thing is 'The Power of the Cap Rate'.
by Charles Dobens on November 16, 2019
The way I teach multifamily is different than everything else, everyone else. Because what I say is, multifamily is not real estate. It is not real estate. Let me put it to you this way.
Let's say Dave owns a 100 apartment complex built in 1986. It has 60 one-bedrooms, 40 two-bedrooms, it has pitched roofs, separate entrances, individually metered. Great property. And Link owns an identical property across the street. Absolutely identical, built by the same builder. The fact that they're across the street has absolutely no meaning whatsoever on the difference in any value, okay? Location is the same. Whose property is more valuable? Link's, or Dave's?
So we're talking about real estate here guys. So, they're right across the street from each other, which one's more...