#160: How Investors Should Think About Underwriting Exit Cap Rates + What We Use In Our Business
The Multifamily Wealth Podcast
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Modeling Out Exit Cap Rates
I think oftentimes what's forgotten as it relates to modeling out exit cap rates is a fundamental understanding of what the current market cap is. And just because one person bought a deal at a low cap rate doesn't mean that that's still what it is in that marketplace. Now, if there's 10 offers on that deal and somebody buys it at that cap and the other ones are around that number, then okay, then that's maybe a little bit more indicative. But we have to be aware of the dynamics of deal making right now. Deals that close today, oftentimes that price was agreed on 90 days ago, right? So we're always looking 90 days 100 days plus in the
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