An overlooked factor of real estate investing is the cost of capital. For a large company, with access to cheap forms of capital (think issuing public stock and debt), you can make money with cap rates that most others could not, especially the little guy.
The disadvantage, however, is that you’re so big getting a 20% Cap Rate on $500,000 gives a microscopic return on your entire portfolio. The need to allocate most of your large resources becomes a limiting factor.
Hamilton Property Management Company - Del Franco Inc.