Posted by Sonny Serrano on October 22, 1999 at 18:33:05:
Ever since my wife purchased the CS course approximately 3 years ago, I made a commitment to conscientiously study the material. I admit that I have gained significant knowledge in the field of RE Investing. I have however, difficulty transitioning from my training phase to my hands-on, on-the-job training phase of my career. Specifically the one area that has become quite unclear to me, within my chosen line of expertise (to be gained), is the valuation of multi-family rental units using capitalization rates. The problem arises when I do the valuation on units for sale on the local market, and even with a solid knowledge of the taxes, insurance, expenses, etc., the sale prices on the majority of these units seem to be over-inflated as it compares to the valuation price that I calculte. Do I need to approach this valuation process using a different perspective. My selected niche is 4-plexes. Any help is greatly appreciated.