Скачать или смотреть v1.44 - No Investor Left Behind: Understanding Cap Rates

In this first episode of a new “No Investor Left Behind” series, Dustin and Adam break down one of commercial real estate’s most critical concepts: capitalization rates (cap rates).

The conversation covers how cap rates function as the primary valuation multiplier in commercial real estate, the relationship between Net Operating Income (NOI), cap rates, and property value, and why understanding this metric is crucial for evaluating any commercial real estate investment opportunity.

Adam and Dustin walk through real-world examples showing how small changes in NOI can create significant value appreciation, and more importantly, how sponsors can sometimes manipulate projected returns through aggressive cap rate assumptions.

This episode equips you to identify red flags in deal presentations, particularly when projected returns rely heavily on cap rate compression rather than operational improvements…whether you’re evaluating your first syndication or your hundredth.


Key Timestamps:
00:01:54 “No Investor Left Behind” series intro
00:03:31 Cap rates and NOI defined
00:06:07 Market cap rates vs. individual property cap rates
00:09:13 Cap rates and interest rate relationship
00:12:28 Example: NOI changes and property value
00:16:22 Forced appreciation through operations
00:18:40 Red flag: Aggressive exit cap assumptions
00:22:05 Why cap rate predictions are unreliable
00:24:32 Simple, conservative valuation models

See all Wealth Independence episodes at https://wealthindependencepod.com

Connect with Dustin:
Big Spring Capital: https://bigspringcap.com
LinkedIn:   / thedustinbailey  
Twitter/X: https://x.com/TheDustinBailey

Connect with Adam:
Bidwell Capital: https://bidwellcapitalfund.com