RPP - Nikolai Ray

Nikolai Ray is the founder and CEO of the MREX, creating marketplaces for multifamily markets and secondaries market for real estate. Nikolai discusses with Rand Partners how people overemphasize cap rates in value-add deals. Key Information: Cap rate is the annualized return on investment if you purchased a property all cash The problem with focusing on cap rates with value add deals is that: Debt is used to purchase real estate (leverage) Cash flows aren’t stabilized, but cap rates are based on annualized cash flows Don’t look at averages of exit cap rate, look at ranges Connect with Nikolai: www.MREX.co Linkedin Facebook Invest with Rand Partners

Episode 43 of the Jake & Gino: Real Estate Investing & Multifamily podcast, hosted by Jake and Dylan, titled "RPP - Nikolai Ray" was published on June 26, 2019 and runs 19 minutes.

June 26, 2019 ·19m · Jake & Gino: Real Estate Investing & Multifamily

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Summary

Episode Description

Key Information:

Cap rate is the annualized return on investment if you purchased a property all cash
The problem with focusing on cap rates with value add deals is that:
- Debt is used to purchase real estate (leverage)
- Cash flows aren’t stabilized, but cap rates are based on annualized cash flows
Don’t look at averages of exit cap rate, look at ranges

Connect with Nikolai:

www.MREX.co

Facebook

Invest with Rand Partners

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About Jake & Gino: Jake & Gino are multifamily investors, operators, and owners who have created a vertically integrated real estate company. They control over $350M in assets under management. Connect with Jake & Gino here --> https://jakeandgino.com.

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