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Updated almost 9 years ago,

Chase Gochnauer's profile image
Chase Gochnauer's profile image
Chase Gochnauer
  • Investor
  • from Des Moines, IA
  • Member since Jan 17, 2015
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380
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201
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Chase Gochnauer's profile image
Chase Gochnauer's profile image
Chase Gochnauer
  • Investor
  • from Des Moines, IA
  • Member since Jan 17, 2015
Connect
Chase Gochnauer
  • Investor
  • Des Moines, IA
201
Votes |
380
Posts
Commercial Real Estate Investing

Commercial/Multifamily returns

Chase Gochnauer
  • Investor
  • Des Moines, IA
Posted

I've been looking all over the place locally here. Everywhere seems to have a bait and switch return. Is this normal?

Example:
Price: $2.25mil
Cap Rate: 7.3%
Seems solid enough, but when I get actual details

Actual NOI: $104,767.18
Pro-Forma NOI: $163,363.99

It's be great to get actual pro-forma NOI but why would they estimate so much higher than actuals? Just to inflate sale price?

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