I have a business mentor and friend that I am constantly debating the topic of today's cap rates. Today, he sent the following listing over to me with the title "Beverly Hills Trophy 6 Unit Property, Crazy High Cap Rate". I attached the listing below.
http://www.crelisting.net/FhG2x7h3w
This guy is asking for a 3.15% Cap Rate.
If you think that is surprising, Mcdonalds and Chik Fil A are selling in the high 3's to low 4's including ground leases. (see this link for some more sales prices on large tenants).
Is it just me or does this market seem like it is getting over heated? I don't understand why you would deploy your capital at those rates. It does not seem like a sustainable model long term.
So for those of you that have been through a few market cycles, what is your read on the current market? How are you hedging?
http://www.crelisting.net/FhG2x7h3w
This guy is asking for a 3.15% Cap Rate.
If you think that is surprising, Mcdonalds and Chik Fil A are selling in the high 3's to low 4's including ground leases. (see this link for some more sales prices on large tenants).
Is it just me or does this market seem like it is getting over heated? I don't understand why you would deploy your capital at those rates. It does not seem like a sustainable model long term.
So for those of you that have been through a few market cycles, what is your read on the current market? How are you hedging?
Dislike ads? Become a Fastlane member:
Subscribe today and surround yourself with winners and millionaire mentors, not those broke friends who only want to drink beer and play video games. :-)
Access Restricted: Unlock 1,000,000+ Posts
Stop Peeking Through the Keyhole.
Open the Door.
You hit a wall because the best advice isn't free—it's earned. Since 2007, MJ DeMarco has been active here daily (99.9% active rate), building a war room for entrepreneurs who refuse to settle for mediocrity.
- Active Daily: Life-changing content posted dozens of times every day. No dead threads.
- MJ's Inner Circle: Direct access to the author of The Millionaire Fastlane.
- Vetted Network: Connect with founders scaling to 7 and 8 figures.
- Proven Roadmaps: Strategy over motivation. Execution over "hustle porn."
"SCALED TO 6-FIGURE MONTHS"
"Tips and advice here saved me from huge mistakes, others allowed me to scale my business to 6-figure months."— User MitchC
"INSANE QUALITY OF PEOPLE"
"The number of high quality people I've met from this forum has been insane. All of it predicated on building real value."— User Richard Peck
"You are the average of the five people you surround yourself with."
Are you surrounding yourself with success?
