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Updated almost 6 years ago,
Different information coming in from brokers
Have the offering standards changed? Lately I have been getting information from brokers selling multifamily where they state that the property cap Rate is lower than the market cap... Shouldn't this be the other way around? I always thought that the market cap should be lower than the property cap... Like maybe property has an 8 cap where similar properties in the area are 7 cap?? why would anyone offer an apartment for sale where the property value is higher than market? Maybe I am confused??