Las Vegas Commercial Real Estate

John Vanhara

I was looking recently at some deals in Los Angeles area. Mostly the areas close to beaches. I saw many deals with very low cap rate. For example something like 4%. I think 5-6% could be considered higher rates. I am wondering how much sense it makes to invest in something like that. Actual CAP rate can be even lower when tenant leaves or something else happens.

At the same time I saw that I-Bonds (Treasury Saving bonds) are now paying 6.73% interest rate. I Bonds are 100% guaranteed by U.S. Government. Having them is the same security as having cash. The only drawback is that you cannot buy more than $60,000 per person each year ($30,000 paper form, $30,000 electronic form).

This entry was posted on Saturday, January 21st, 2006 at 11:07 am and is filed under Commercial Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.