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- Inflation Vs. Economic Slowdown
Inflation Vs. Economic Slowdown
Unveiling the Market's Secrets from Behind the Scenes
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“It would appear as though we can make a very strong case that the Fed should not raise interest rates this week and an equally strong case that they should. It appears as though the decline in inflation has effectively stalled out. Hence, they should not lower rates. At the same time, it appears that the economy continues to slow (despite what you might hear). Hence, to preserve a soft landing maybe they should reduce rates. I am reasonably confident they will reduce rates or that reducing inflation without creating a hard landing is foremost on Powell’s agenda. We’ll see.”
-Hugh Johnson, Chairman Emeritus at Graypoint
Recent Multifamily Sales (Click to view details)
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Question: How do you calculate the cap rate for a multifamily property, and what does it indicate about its investment potential? | Answer: To calculate the cap rate for a multifamily property, divide the property's Net Operating Income (NOI) by its purchase price or current market value. The cap rate indicates the property's potential return on investment as a percentage based on its income-producing ability, independent of financing. A higher cap rate typically suggests higher potential returns but may also reflect higher risk or lower property value appreciation potential, while a lower cap rate indicates potentially lower returns but often signifies lower risk and higher property value stability. |
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Quiz of The Week
What is a key factor in determining the profitability of a multifamily property?
a. Location
b. The number of bedrooms in each unit
c. The age of the building
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Current Rates (Weekly Update)
10-Year Treasury - 4.21% (⬇️ .02%)
Fed Funds Rate - 4.58% (0%)
1-Month Term SOFR - 4.45% (⬇️ .07%)
About Nuvo Capital Partners
Nuvo Capital Partners is a niche market-focused multifamily investment platform operating throughout the Southeastern United States. As a dedicated sponsor (General Partner), we specialize in institutional quality real estate investments within these regions. Our team comprises industry professionals with 25+ years of combined experience, ensuring expertise and market knowledge. We pride ourselves on offering a transparent investment process, providing our investors with access to high-quality real estate opportunities while upholding integrity throughout.
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