Posted by ray@lcorn on April 18, 2006 at 16:52:08:
Ambassador? Hmmm… been called a lot of things, but that’s a new one!
IMHO, a low asking cap rate “says” the seller is optimistic about the demand for the product. Some may be testing the market and later reduce the asking price; others may be bid even lower for some property types.
A range of 4%-9% in cap rates covers a lot of ground… from ridiculous to doable… all subject to property type, condition and location. Better if you ask about a specific deal. Generalities will get you in trouble.
ray