Morris: How Cap Rate Adjustments and Leverage Can Double Invested Equity
Paul Mark Morris · Starting Small in Real Estate Can Lead to Massive Wealth · Dec 29, 2025 · at 46:58
Host Paul Morris explains how value-add multi-family real estate investments generate outsized returns compared to passive stock index investing.
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“They're taking a four, they might take a four cap, you know, that's a value add, figure out how to make it, you know, a six cap, and they've only put down 40%. I mean, you can almost do that math in your head. You've now increased the total value of the building by 50%, right? Because you're going to take it back down to a four cap from a six. You do that by increasing the price, and now the 40% that you put down has just doubled, you know.”
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