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Building an Ro

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Bill_FL

Thread Starter
Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
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

Junior Member
Joined
Jan 23, 2002
Professional Status
Certified General Appraiser
State
Ohio
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

Thread Starter
Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
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.
 
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