Correct me if I'm wrong!!

[Jeffrey Charter]

The higher the cap rate the lower the purchase price and value! Right?

Thanks

[Joel Owens]

Jeffrey if your agent doesn't understand the basic mathematical formulas that come with analyzing properties of this type than frankly you might want to look for another broker/agent that does.

A local broker that is experienced if they know that 7 caps are asking price and with negotiation you get them to 8 caps and 10 caps do not exist in your area due to buyer demand then that broker/agent will try to reset your expectations, look in a different area where that can be found, or not work with you.

To arrive at the TRUE CAP you have to know how to analyze the numbers. Sellers have a STATED CAP when selling and most of the time I find 85% or so the cap is not accurate. Sometimes it's off by a little and sometimes a lot.