Comments on: Cap Rates & 50 Million Dollar Bills — What WOULD I Do? http://www.bawldguy.com/cap-rates-50-million-dollar-bills-what-would-i-do/ Real Estate Investing through Purposeful Planning Tue, 06 Jan 2009 15:06:49 +0000 http://wordpress.org/?v=2.0.11 by: BawldGuy http://www.bawldguy.com/cap-rates-50-million-dollar-bills-what-would-i-do/#comment-5779 Tue, 29 Jan 2008 17:13:24 +0000 http://www.bawldguy.com/cap-rates-50-million-dollar-bills-what-would-i-do/#comment-5779 And Chris? I've talked to folks who agree with you about the Houston area. Road trip! And Chris? I’ve talked to folks who agree with you about the Houston area. Road trip!

]]> by: Christopher Smith http://www.bawldguy.com/cap-rates-50-million-dollar-bills-what-would-i-do/#comment-5777 Tue, 29 Jan 2008 17:08:32 +0000 http://www.bawldguy.com/cap-rates-50-million-dollar-bills-what-would-i-do/#comment-5777 Hey there's one thing we can all agree on: why buy in California when you can invest right here in the Great State of Texas? Hey there’s one thing we can all agree on: why buy in California when you can invest right here in the Great State of Texas?

]]> by: BawldGuy http://www.bawldguy.com/cap-rates-50-million-dollar-bills-what-would-i-do/#comment-5761 Tue, 29 Jan 2008 01:21:17 +0000 http://www.bawldguy.com/cap-rates-50-million-dollar-bills-what-would-i-do/#comment-5761 Michael -- So many investors really aren't doing what you and I do, which is a real down and dirty analysis. Furthermore, there's a large segment who simply don't know when they're looking at a suspect income/expense statement. How many times how you looked at the seller's 'number' and had a good laugh? I rest my case. :) Cap rates are only as good as the reality involved in compiling the numbers. Michael — So many investors really aren’t doing what you and I do, which is a real down and dirty analysis. Furthermore, there’s a large segment who simply don’t know when they’re looking at a suspect income/expense statement.

How many times how you looked at the seller’s ‘number’ and had a good laugh? I rest my case. :)

Cap rates are only as good as the reality involved in compiling the numbers.

]]> by: michael cook http://www.bawldguy.com/cap-rates-50-million-dollar-bills-what-would-i-do/#comment-5759 Mon, 28 Jan 2008 22:32:30 +0000 http://www.bawldguy.com/cap-rates-50-million-dollar-bills-what-would-i-do/#comment-5759 Lets not be crazy. Any reasonable investor does diligence on cap rates. They are great for comparing properties in different locations and of different quality. For the record i made more money with high cap rate properties than i did with others. That being said it took a lot of sweat equity. Pick your poison. Lets not be crazy. Any reasonable investor does diligence on cap rates. They are great for comparing properties in different locations and of different quality. For the record i made more money with high cap rate properties than i did with others. That being said it took a lot of sweat equity. Pick your poison.

]]> by: BawldGuy http://www.bawldguy.com/cap-rates-50-million-dollar-bills-what-would-i-do/#comment-5758 Mon, 28 Jan 2008 21:52:27 +0000 http://www.bawldguy.com/cap-rates-50-million-dollar-bills-what-would-i-do/#comment-5758 Sam -- I didn't touch on that aspect, but you hit the nail on the head. This is why we do our own analysis beginning with a complete reconstruction of income and expenses. It tends to clarify what's really going on. Good take. Sam — I didn’t touch on that aspect, but you hit the nail on the head. This is why we do our own analysis beginning with a complete reconstruction of income and expenses. It tends to clarify what’s really going on.

Good take.

]]> by: Sam Guillen http://www.bawldguy.com/cap-rates-50-million-dollar-bills-what-would-i-do/#comment-5757 Mon, 28 Jan 2008 21:48:10 +0000 http://www.bawldguy.com/cap-rates-50-million-dollar-bills-what-would-i-do/#comment-5757 Cap rates are over rated. In fact, they are the most manipulated fact about investment property. Any good broker worth their salt chuckles when they here “Cap Rates”. Let’s see: Fire the Good landscaper Cancel the ongoing pest control Find the cheapest insurance policy you can find, www.bojackinsurance.com Fire the property manager Lease to high risk tenants willing to pay higher rent and the list goes on…… Cap Rates are the dirty little secret that bite the inexperienced every time. Cap Rates? I chuckle….. Cap rates are over rated. In fact, they are the most manipulated fact about investment property. Any good broker worth their salt chuckles when they here “Cap Rates”.

Let’s see:
Fire the Good landscaper
Cancel the ongoing pest control
Find the cheapest insurance policy you can find, www.bojackinsurance.com
Fire the property manager
Lease to high risk tenants willing to pay higher rent

and the list goes on……

Cap Rates are the dirty little secret that bite the inexperienced every time.

Cap Rates? I chuckle…..

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