How do you add value or create value for your investors?

[Robert Martinez]

We like to use a little thing we call the magic formula. $1/Cap Rate = Valuation

At a 6% Cap Rate, Every Dollar of Income is Worth $16.67 in Value. Why this matters to an investor when looking at a syndicator is to forced appreciation or added value. For example $30/month profit on flat-rate utility. On 272 unit property. Would equal $8160 x 12 months = $97,920.00

$97,920/6%= $1,632,000 added value!! This little nugget is definitely a GOLD mine.

[Evan Polaski]

@Robert Martinez, along those lines, I just talk to them in terms they know.  Cap rates, for those newer to real estate, can be hard to process mentally, since they are inverted.  So I turn it around.  A cap rate is the real estate equivalent of a price earnings multiple.  A 5 cap is a 20 multiple. 

Again, this is the same conversation you are having but in a more common language.