Improving Asset Class to Reduce Cap Rate

[Shane Crockett]

I’m getting into MF investing and wanted to obtain feedback in regards to cap rates, specifically on how to improve (lower) them from the time you buy to the time you sell a property.

My fear is that if I purchase a B/C grade asset and put money into it for value add, but can only find buyers willing to negotiate a cap rate that kills all my equity, I’ve basically wasted a lot of time, energy, and money just to break even or perhaps worse.

What are the keys to avoid this from happening, and how should I be looking for the right properties to purchase so I don’t end up in this situation?