CAP rate in Dover, Delaware

[Eric Waterman]

I have asked two realtors about what cap rate investors are deploying capital in Dover, Delaware. Both didn't know what I was talking about. They both supposedly have worked with investors. One is also a property manager. Am I asking the question wrong? Anybody know the cap rate for Dover, DE?

[Gino Barbaro]

@Eric Waterman

Eric

If you are dealing with a broker who does not understand what a cap rate is, regardless if you use the metric or not, find another broker. Cap rates are utilized for larger deals, but they are only one measurement. It is just a quick guide to look at value, almost like GRM (gross rent multiplier). I would not bid on a property based solely on these two calculations. Larger complexes base their prices on cap rates, and banks do use cap rates to analyze values

Gino