Understanding Cap Rates, Yield on Cost, Development Spread, and IRR

On the latest episode of the AAA Storage Podcast, Paul Bennett provides a masterclass on: "Understanding Cap Rates, Yield on Cost, Development Spread, and IRR."

Whether you’re a seasoned investor or refining your strategy, grasping these concepts is key to evaluating property risks and returns. Dive into the analytical world of real estate investing and learn how our team analyzes cap rates to gauge market value, yield on cost to forecast stabilized project income, and development spread to assess potential profit margins. With a consistent history of delivering high IRRs, we break down these metrics—essential for identifying promising investment opportunities in the self-storage sector.

𝗧𝗼𝗽𝗶𝗰𝘀 𝗖𝗼𝘃𝗲𝗿𝗲𝗱:
• The role of cap rates in property valuation.
• Calculating yield on cost for stabilized asset projections.
• Understanding development spread for profit analysis.
• Strategies to achieve a target 19-20% IRR.

Join us as we provide insights from decades of expertise in self-storage investment.