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Founder's Insights E24 Exit Cap Rates
Manage episode 469781898 series 2892956
I just got back from an amazing trip to Sedona after RaiseFest in Phoenix! Great hikes, pickleball, cigars, and, of course, plenty of real estate talk. One topic that kept coming up was exit cap rates.
Many investors default to widening their exit cap rate for conservatism but in today’s market, that strategy doesn’t always make sense, especially for value-add deals. Your exit cap rate should reflect not just conservatism but also the transformation of the asset from purchase to sale.
In this video, I break down why the conversation around exit cap rates has changed, why some investors are even projecting flat or compressed exits, and how you can adapt your underwriting strategy to today’s market.
Learn more about Lone Star Capital at www.lscre.com
Get a FREE copy of the Passive Investor Guide:
https://www.lscre.com/content/passive-investor-guide
Subscribe to our newsletter and receive our FREE underwriting model package:
https://www.lscre.com/resource/fof-underwriting-toolkit
Follow Rob Beardsley:
https://www.linkedin.com/in/rob-beardsley/
https://www.facebook.com/RobBeardsleyLSC/
Read Rob’s articles:
https://www.lscre.com/blog
303 episodes
Manage episode 469781898 series 2892956
I just got back from an amazing trip to Sedona after RaiseFest in Phoenix! Great hikes, pickleball, cigars, and, of course, plenty of real estate talk. One topic that kept coming up was exit cap rates.
Many investors default to widening their exit cap rate for conservatism but in today’s market, that strategy doesn’t always make sense, especially for value-add deals. Your exit cap rate should reflect not just conservatism but also the transformation of the asset from purchase to sale.
In this video, I break down why the conversation around exit cap rates has changed, why some investors are even projecting flat or compressed exits, and how you can adapt your underwriting strategy to today’s market.
Learn more about Lone Star Capital at www.lscre.com
Get a FREE copy of the Passive Investor Guide:
https://www.lscre.com/content/passive-investor-guide
Subscribe to our newsletter and receive our FREE underwriting model package:
https://www.lscre.com/resource/fof-underwriting-toolkit
Follow Rob Beardsley:
https://www.linkedin.com/in/rob-beardsley/
https://www.facebook.com/RobBeardsleyLSC/
Read Rob’s articles:
https://www.lscre.com/blog
303 episodes
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