Limited Partner (LP) Investing Lessons

Limited Partner (LP) Investing Lessons

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Limited Partner (LP) Investing Lessons
Limited Partner (LP) Investing Lessons
Cap rate compression trap
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Cap rate compression trap

How to find hidden cap rate compression in real estate investments

Aleksey Chernobelskiy's avatar
Aleksey Chernobelskiy
Oct 10, 2024
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Limited Partner (LP) Investing Lessons
Limited Partner (LP) Investing Lessons
Cap rate compression trap
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  1. Last premium post: LP Investing Lessons Podcast #9 (now on Spotify)

  2. Last free post: LP Investing Digest #50 & Full Article Index By Topic


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  1. LP Cohort: Review 4 deals with me and other LPs to learn what to look out for - please reply to this email if it’s of interest.

  2. LP Topics: a more advanced ongoing biweekly 1 hour meeting with other LPs where we'll go over investment decks, capital call / distressed situations, and modeling. Please reply to this email if you’re interested.


Cap rate compression trap

Happy Wednesday! 👋

I know what you’re thinking - “how hard can it be to check for cap rate compression!”

If the going in cap rate is 6% and the exit cap rate is 6%, I should be fine.. right?

Today we’ll deep dive on cap rate compression assumptions and why this statement is wrong.

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