The Industrial Real Estate Podcast The Truth About Cap Rates
In this week's episode I interviewed Brian Burke, President & CEO of Praxis Capital to discuss the following topics as it relates to commercial and industrial real estate:
0:00 - Introduction
1:10 - Cap rates are NOT a return metric
7:10 - Why are cap rates so popular?
8:38 - Cap rates vs unleveraged yields
12:30 - Cap rates & interest rates
15:01 - Valuating a deal (and how cap rates are used)
21:48 - Actual return metrics (IRR, cash-on-cash, equity multiplier)
30:20 - Looking for deals in today's market
35:50 - Active vs Passive real estate investing
39:44 - Manipulating cap rates
44:15 - Software for analyzing deals
47:40 - Forecasting rent growth
49:23 - A fantastic summary of cap rates
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About Brian:
Brian Burke is President & CEO of Praxis Capital, Inc., a vertically integrated real estate private equity investment firm, which he founded in 2001. Brian is also a member of the Praxis Investment Committee. Praxis operates on multiple platforms, currently managing active syndications for the acquisition of single-family, multifamily and opportunistic residential assets in US growth markets.
Over the course of a real estate investment career that began in 1989, the offerings Brian manages have acquired over 750 properties, including over 3,000 multifamily units, with the assistance of proprietary software that he wrote himself. Acquired asset classes include single family homes, self storage, mixed-use and large apartment complexes in multiple states. Brian has arranged well over $500 million in debt and equity for Praxis acquisitions. Praxis’ current portfolio exceeds $200 million of real estate assets under management.
Brian is the author of The Hands-Off Investor: An Insider’s Guide to Investing in Passive Real Estate Syndications, and a frequent public speaker at real estate conferences and events nationwide.
Connect with Brian:
LinkedIn: https://www.linkedin.com/in/praxiscap...
Praxis Capital Website: https://praxcap.com/
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🙋♂️ Chad Griffiths, MBA, SIOR
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