Thursday, March 19, 2015

The X Factor Driving Today's Investment in Multifamily Real Estate

If interest rates were at a higher level such that a buyer of a multifamily property would go from a 5% cap to a 6% cap to achieve the same yield, the property would need to have a 20% higher net operating income to maintain the same value.

This is why many owners will consider selling at lower rates, as it gives them a lot more value while the buyer achieves their goal and is able to lock in a rate for 10 years.

Read more on Globest.com