“Every person who invests in well-selected real estate in a growing section of a prosperous community adopts the surest and safest method of becoming independent, for real estate is the basis of wealth.” — Theodore Roosevelt
Our team has been experiencing an increase in calls asking about investment opportunities in real estate. With the low interest being paid by banks, clients are turning to real estate for a secure return on their money. People are looking for both multifamily residential as well as commercial investments to help their capital grow. CAP rates very depending on the strength of the tenant and conditions of the building. A strong tenant in a building in great condition might be an attractive investment at a 4% CAP rate. Whereas an older building with tenants not as strong is going to require a 6-7% CAP rate to attract buyers. A CAP rate is simply the % of return on your investment after all rents are collected and all expenses are deducted. If you have further questions regarding CAP rates or any type of investment properties, give us a call! We’d love to help you make a SMART investment decision that will benefit you for years to come.