CAP RATE OF 8%

By
Real Estate Sales Representative with Westwood Metes & Bounds

just saw a listing on our MLS with a cap rate of 8%. Now I am sure that pretty much everyone that might

be reading this blog knows what they are getting for their money in cd's and t bonds etc. So why is this

listing still on the market? If the owner is correct and this is truly giving a cap rate of 8% where are the

 investors. The thing with real estate is, everyone needs to live somewhere just like everyone produces

garbage and everyone leaves this earth at sometime. That is why those respective businesses are usually

good to get into. So why has this listing, in a great location not sold. You tell me!

Comments (2)

Tean Wong
Centre Realty Group - Newton, MA

MAY BE, THERE ARE SOMTHING BETTER ON THE MARKET!

CAP RATE ON MLS IS NOT GAURANTEE UNLIKE CD WITH FDIC GAURANTEE. A LOT OF TIMES THE CAP RATE ON MLS IS NOT REFLECTING CURRENT MARKET CONDITION, ESPECIALLY IF THE PROPERTY IS VACANT.

Nov 17, 2009 12:58 AM
sandy reid
Westwood Metes & Bounds - New Paltz, NY
period homes, second home market

You are right,  But this one appears to be correct and the property is fully rented.  We are a college town with Suny College in the village where this multi family is.  A couple of years ago I would have had investors falling over themselves to get this one and now with interest rates so low you would think this a very attractive listing.  Who knows.  Thank you for reading and commenting!

Nov 17, 2009 12:38 PM