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In: Finance

React: If a buyer of a property says that they purchased it for a 9% cap...

  1. React: If a buyer of a property says that they purchased it for a 9% cap rate, while the seller of the same property says they sold it for an 8% cap rate, one of them must be lying.

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Cap rate ( Capitalization rate ) is nothing but NOI divided by the purchase price, Now both the component of the formula will be same for buyer as well as the seller, hence one of buyer or seller must be lying

jeff jeffy answered 2 years ago
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