What is a reversion cap rate in multifamily investing?

Good question.

A reversion cap rate is the projected cap rate at sale. So, let’s say you receive a prospectus to invest into a multifamily deal and it shows a projected cap rate at exit. This is also referred to as a reversion cap rate.

If you are given a prospectus that shows the cap rate going lower over time dropping from 5 to 4.5 over a few years this is an aggressive assumption and very optimistic. A more conservative estimate might show the cap rate going higher. If you would like to learn more about reversion cap rates in multifamily investing, you should contact my office.

I offer education and training to landlords, engineers, doctors and dentists, and many others that would like to learn how to enjoy the benefits of multifamily as quickly as possible. If that sounds interesting contact my office by going to www.benjaminzmiller.com and fill out the contact form.

If you want to learn how to invest, you should register for my free weekly investor meeting to learn more:

https://www.meetup.com/benjamin-z-millers-investor-networking-group/

I hope that helps and good luck with your investing!

Benjamin Z Miller
www.benjaminzmiller.com
1-817-203-4160
ben@benjaminzmiller.com

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