ILAB 105 – Cap Rates – Understanding Real Estate Yields and Valuations

“Cap Rates can only be applied to stabilized properties.”

Omar Khan

Omar Khan is a real estate investor with over 10 years of global investment experience. He is one of the people behind Boardwalk Wealth, a private equity firm in Dallas, Texas which connects International investors with US-based multifamily real estate opportunities. He is responsible for capital raising, strategic planning, and investor relations. His vast knowledge in the real estate makes him the perfect person to discuss the fundamentals of cap rates.

On this episode, Omar provides a better understanding of what cap rates are for people who are not very familiar with the terminologies in the real estate industry. He explains how cap rates work and what external factors affect its value. He gives away tips and strategies on how to assess real estate yields in order to optimize investment returns. This episode helps you understand the value of the properties or assets you buy or sell.

Listen to ILAB 105 on iTunes here or subscribe on your favorite podcast app.

ILAB 105 Show Notes

Where we are:

  • Omar – Dallas, Texas
  • Sam – Athens, Greece
  • Johnny – Chiang Mai, Thailand





ArtofFX – start with just a $25,000 account for ILAB members (reduced from $50,000)

Fundrise – start with only $1,000 into their REIT funds (non-accredited investors OK)

Wealthfront – get your first $15,000 managed free

Betterment – get up to 1 year managed free

PeerStreet – get a 1% yield bump on your first loan

Traveling Mailbox – get 5% off subscriptions with ‘ILAB’ promo code

Time Stamps:

  • 13:20 – What is a Cap Rate?
  • 14:55 – Understanding Leverage
  • 16:52 – Variables that affect the Cap Rates
  • 17:32 – How to stabilize properties?
  • 22:20 – Cap rates for different classes
  • 28:45 – Balancing needs with income & capital appreciation
  • 30:49 – Highest Cap Rates
  • 37:10 – Cap rates in buying and selling assets
  • 40:34 – How to find buyers easily?
  • 42:58 – Risk Management during a recession
  • 45:52 – Billion dollar properties
  • 49:04 – Equity Multiple and Internal Rate of Return
  • 52:40 – Their strategies on a possible recession
  • 57:40 – Investment opportunities for individuals


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