In Part 1 we saw that a 7.14 percent cap rate for an institutional investor has negative leverage while a 10 percent cap rate for a non-institutional investor has positive leverage. As you can guess, there is some number in between where there is a break even point between positive and negative leverage (let’s call it . . . → Read More: Investor Surveys & Weaknesses Redux – Part 2 of 3
Investor Surveys & Weaknesses Redux – Part 2 of 3
In Part 1 we saw that a 7.14 percent cap rate for an institutional investor has negative leverage while a 10 percent cap rate for a non-institutional investor has positive leverage. As you can guess, there is some number in between where there is a break even point between positive and negative leverage (let’s call it . . . → Read More: Investor Surveys & Weaknesses Redux – Part 2 of 3