Jake and Gino Multifamily Investing Entrepreneurs: 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 cashĀ 

  • The problem with focusing on cap rates with value add deals is that:

    • Debt is used to purchase real estate (leverage)

    • Cash flows arenā€™t stabilized, but cap rates are based on annualized cash flows

  • Donā€™t look at averages of exit cap rate, look at rangesĀ 

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Connect with Nikolai:

www.MREX.co

Linkedin

Facebook

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Invest with Rand PartnersĀ 

Jake and Gino Multifamily Investing Entrepreneurs: RPP - Nikolai Ray
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