What Is a Good Cap Rate for Multifamily Real Estate? A Practical Guide for Investors
You’re reviewing a multifamily deal summary and the cap rate is 5.2%. A quick search tells you the national average sits around 5.6%, so the deal looks cheap. This comparison alone tells you almost nothing useful, because cap rate is one of the most context-dependent numbers in real estate investing. The real question is not […]
What Is IRR in Real Estate and How Should Investors Actually Use It?
You open a deal summary from a sponsor you’ve been tracking. The projected internal rate of return (IRR) is 15%. You open another from a different sponsor. Theirs says 18%. Most investors would call that an easy comparison, but it isn’t. Most investors never ask what is IRR in real estate beyond the surface-level definition. […]