Building an Ro

[Bill_FL]

Does anyone have any creative alternative investment type formulas for building cap rates that have been published?

I have found many on building IRR's, but none on an overall rate. Just curious to see if there is anyone out there who uses more than a few market based methods with a check of an alternative build up method.

 

[Geoff Hatcher]

I extract the overall rate from the market when suffcient data is available, also use the Band of Investyment Technique and DCR method, depending on investment grade of the property, Valuation Insights and Perspectives typically list a range and mean overall rate by Korpacz.

Geoff Hatcher

 

[Bill_FL]

I typically use market extracted rates also, and use a band of investment technique also. What I am looking for is an accepted build up method that uses something like a safe rate + type formula.