105: Cap Rates – Understanding Real Estate Yields and Valuations
By Sam Marks / Johnny FD
Omar Khan is a real estate investor with over 10 years of global investment experience. He is one of the people behind Boardwalk Wealth, a private equity firm in Dallas, Texas which connects International investors with US-based multifamily real estate opportunities. He is responsible for capital raising, strategic planning, and investor relations. His vast knowledge in the real estate makes him the perfect person to discuss the fundamentals of cap rates. On this episode, Omar provides a better understanding of what cap rates are for people who are not very familiar with the terminologies in the real estate industry. He explains how cap rates work and what external factors affect its value. He gives away tips and strategies on how to assess real estate yields in order to optimize investment returns. This episode helps you understand the value of the properties or assets you buy or sell. Where we are: Omar – Dallas, Texas Sam – Athens, Greece Johnny – Chiang Mai, Thailand Links: Boardwalkwealth.com Travelingmailbox.com (Promo Code: ILAB) Time Stamps: 12:20 – What is a Cap Rate? 13:55 – Understanding Leverage 15:52 – Variables that affect the Cap Rates 16:32 – How to stabilize properties? 21:20 – Cap rates for different classes 27:45 – Balancing needs with income & capital appreciation 29:49 – Highest Cap Rates 36:10 – Cap rates in buying and selling assets 39:34 – How to find buyers easily? 41:58 – Risk Management during a recession 44:52 – Billion dollar properties 48:04 – Equity Multiple and Internal Rate of Return 51:40 – Their strategies on a possible recession 56:40 – Investment opportunities for individuals If you enjoyed this episode, do us a favor and share it! Also if you haven’t already, please take a minute to leave us a 5-star review on iTunes and claim your bonus here! Copyright 2017. All rights reserved. Read our disclaimer here.