Catherine Bell explains cap rates: buyers want higher ones for better returns, sellers want lower ones because they mean higher property values. Your position in the deal determines whether a cap rate number helps or hurts you.
What's your lesson? So here's the lesson I want you all to understand, that you need to understand what you're sitting on. So as a buyer, you want a higher cap rate, right? As a seller, you want a lower cap rate. So this benefits the seller, the lower the cap rate here, but as a buyer, higher cap rate here. So you need to know which side of the transaction you're on. The numbers, numbers tell you what to do, but it's based on the position that you're currently in.
