105: Cap Rates – Understanding Real Estate Yields and Valuations

Invest Like a Boss

Sam Marks Johnny FD Derek Spartz

Investing, Business

4.8 • 518 Ratings

🗓️ 3 October 2018

⏱️ 82 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Omar Khan is a real estate investor with over 10 years of global investment experience. He is one of the people behind Boardwalk Wealth, a private equity firm in Dallas, Texas which connects International investors with US-based multifamily real estate opportunities. He is responsible for capital raising, strategic planning, and investor relations. His vast knowledge in the real estate makes him the perfect person to discuss the fundamentals of cap rates.

On this episode, Omar provides a better understanding of what cap rates are for people who are not very familiar with the terminologies in the real estate industry. He explains how cap rates work and what external factors affect its value. He gives away tips and strategies on how to assess real estate yields in order to optimize investment returns. This episode helps you understand the value of the properties or assets you buy or sell.

Where we are:

Omar – Dallas, Texas
Sam – Athens, Greece
Johnny – Chiang Mai, Thailand

Links:

Time Stamps:

12:20 – What is a Cap Rate?
13:55 – Understanding Leverage
15:52 – Variables that affect the Cap Rates
16:32 – How to stabilize properties?
21:20 – Cap rates for different classes
27:45 – Balancing needs with income & capital appreciation
29:49 – Highest Cap Rates
36:10 – Cap rates in buying and selling assets
39:34 – How to find buyers easily?
41:58 – Risk Management during a recession
44:52 – Billion dollar properties
48:04 – Equity Multiple and Internal Rate of Return
51:40 – Their strategies on a possible recession
56:40 – Investment opportunities for individuals

If you enjoyed this episode, do us a favor and share it! Also if you haven’t already, please take a minute to leave us a 5-star review on iTunes and claim your bonus here!

Transcript

Click on a timestamp to play from that location

0:00.0	Hi bosses, Sam here. This week's episode is brought to you by Traveling Mailbox. Traveling
0:04.5	Mailbox is a virtual mail solution for businesses and entrepreneurs. It's going to be the future
0:09.7	for all of us. Virtual Mailboxes, my gosh, I wish I had gotten started with this years ago,
0:14.5	being on the road as much as I have, and always moving addresses, mail, including checks,
0:19.2	regularly go missing. As any regular listeners know,
0:22.6	two months, I've had two different things end up in collections simply because they went to the
0:27.5	wrong address and I never received them. Now I'm in Greece as part of a two-month European
0:31.5	circuit. I no longer worry about mail. Traveling mailbox receives all my mail, scans it to an email,
0:37.2	and then lets me decide what I want
0:38.9	to do with it, whether it's shred it, forward it, or even deposit checks on my behalf.
0:42.9	It truly makes life, investing, and business more efficient and worry-free.
0:47.3	Traveling mailbox has given us a 5% off promo code.
0:50.0	If you want to try it, I definitely recommend it.
0:52.5	Just go to the link in our show notes and use promo code, ILab. It's a great service. Get after it. Welcome to the Invest Like a Boss podcast. I'm Sam Marks. And I'm Johnny FD. We're self-made entrepreneurs who invest our own money and use modern technology to invest like a boss. Join us each week for exclusive interviews with our network of modern investors, business owners, and multimillionaires to discover new ways to invest our hard-earned cash.
1:15.5	Hey bosses, this is Johnny, and welcome to episode 105 of the Invest Like a Boss podcast.
1:21.6	I'm in Chiang-Lai, Thailand, and the Greek god himself, Sam Marks, is in Athens, Greece.
1:29.3	Hey, bosses.
1:30.3	Hey, Johnny.
1:31.2	Greetings.
1:32.1	I don't know any Greek yet except for the word Malacca, which means asshole.
1:36.8	But they say it here very friendly.
1:39.9	It's like, hey, Malacca, hey Malacca.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Sam Marks Johnny FD Derek Spartz, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Sam Marks Johnny FD Derek Spartz and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.