In other words, the cap rate you bought the property with should be lower than the cap rate you sold it with.However, if the market your property is located in has a turn for the better, it will be sold at a lower compressed cap rate in the actual future, in which case you reap the reward of extra return without taking any additional risk.Factor #4: Capital Expenditure (“CapEx”) ReservesCapital or replacement reserves is the money set aside for one time improvements to the property (such as replacing roofs, fixing HVAC systems, etc).

Outsized rent growth and cap rate compression have bailed these sponsors out, so even though their underwriting was insane, the market bailed them out. 

Odds are that's quick enough for you when it comes to submitting offers in a compressed time-frame.  

Anything lower than 30% and I am putting my investors' money at risk specially if and when the real estate market goes down.Impressive, i'd be interested in knowing in more details what kind of $50 million projects consistently land you a +30%LIRR I find IRR mostly IRRelevant if all the metrics such as leverage, rent growth, cap rate expansion/compression assumptions, are unknown, especially at this point in the cycle.

The slab on grade concrete foundation is designed for compression and uses minimum rebar to control shrinkage and temperature cracks.

Keep in mind though that this listing is generally for compressive "denting" and does not account for the finish.  

Mathematically speaking all of the limited partner's outside basis (80% interest) would have to be multiplied by .63 to compress to 50%.

A regular shower rod is either secured by compression and screwed in, I assume the curved rod needs to be secured to the framing behind the wall? 

It might have the same threads as a relatively large (like 3/4") compression fitting nut, but none of them stocked compression fittings that big. 

On the other hand, investors are having a hard time getting a hold of inventory and are compressing their margins to compete with new "investors" that are coming out of all the real estate education programs.3.