For those of you wondering what I do all day now...

[agriking]

Potential Client: I want to list this building for $395,000.00

Comments

[bdouville]

So, some of your clients aren't particularly good at math?

[agriking]

They're fine with math. Just have an unrealistic expectation on the current value of their property.

[sweet_lil_puppy]

4% is a lot better than many investments these days. I wouldn't nessecarily walk away from a stable 4% offer.

[agriking]

Its been my experience that unless you have a cap rate starting at least around 8% no serious investor is going to give you a look.

[lakeguy]

yeah if isn't going to make them enough money why bother looking at it

[agriking]

Well, not only that but the way the banking industry is working right now, if the investment can't pay for itself they won't lend you the money to buy it.

[tko_ak]

And what does that mean for us simple folk?

[agriking]

It means that for the net income generated by the property the asking price is too high. No bank is currently going to finance a 4% cap.