Comments on: Four Kinds of Cap Rates: Will The Real One Please Stand Up? http://www.netgainrealestate.com/four-kinds-of-cap-rates-will-the-real-one-please-stand-up Commercial real estate investing and income property analysis Wed, 17 Mar 2010 05:11:24 +0000 http://wordpress.org/?v=2.5 By: NetGain http://www.netgainrealestate.com/four-kinds-of-cap-rates-will-the-real-one-please-stand-up#comment-272 NetGain Tue, 18 Nov 2008 22:04:08 +0000 http://74.53.108.194/~ngre8/?p=174#comment-272 Thank you for your comment. The purpose of this article is to point out that the cap rate can be manipulated based upon the approach, and the closer you are to real net income numbers the better. Note that in our latest <a href="http://www.netgainrealestate.com/cap-rate-recommendations" rel="nofollow">cap rate</a> update we emphasize lease expirations. With or without an option, negotiation will most likely be in the lessee's favor. Thank you for your comment. The purpose of this article is to point out that the cap rate can be manipulated based upon the approach, and the closer you are to real net income numbers the better. Note that in our latest cap rate update we emphasize lease expirations. With or without an option, negotiation will most likely be in the lessee’s favor.

]]> By: Bob http://www.netgainrealestate.com/four-kinds-of-cap-rates-will-the-real-one-please-stand-up#comment-271 Bob Sun, 16 Nov 2008 19:38:10 +0000 http://74.53.108.194/~ngre8/?p=174#comment-271 I am a State Certified General Real Estate Appraiser with 32 years experience. I have never used your method(s) of developing a net income, unless it is the same as my statement below and your #3. If you have an opportunity to read a good appraisal, the appraiser will spend a lot of time and effort in developing an "economic" rent rate for the property. And from that take out vacancy and expense factors to end up with a net income. I am a State Certified General Real Estate Appraiser with 32 years experience. I have never used your method(s) of developing a net income, unless it is the same as my statement below and your #3.

If you have an opportunity to read a good appraisal, the appraiser will spend a lot of time and effort in developing an “economic” rent rate for the property. And from that take out vacancy and expense factors to end up with a net income.

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