Real estate investors love appreciation of their underlying asset(s). But there is often bad news associated with appreciation - namely, "cap rate compression." In this video, we look at what cap rate compression is and what to do about it to optimize real estate returns.

General Disclosure
Not an offer to buy, nor a solicitation to sell securities. Information herein is provided for information purposes only, and should not be relied upon to make an investment decision. All investing involves risk of loss of some or all principal invested. Past performance is not indicative of future results. Speak to your finance and/or tax professional prior to investing. Securities offered through Emerson Equity LLC Member: FINRA/SIPC. Only available in states where Emerson Equity LLC is registered. Emerson Equity LLC is not affiliated with any other entities identified in this communication.

1031 Risk Disclosure:
 There is no guarantee that any strategy will be successful or achieve investment objectives;
 Potential for property value loss – All real estate investments have the potential to lose value during the life of the investments;
 Change of tax status – The income stream and depreciation schedule for any investment property may affect the property owner’s income bracket and/or tax status. An unfavorable tax ruling may cancel deferral of capital gains and result in immediate tax liabilities;
 Potential for foreclosure – All financed real estate investments have potential for foreclosure;
 Illiquidity – Because 1031 exchanges are commonly offered through private placement offerings and are illiquid securities. There is no secondary market for these investments.
 Reduction or Elimination of Monthly Cash Flow Distributions – Like any investment in real estate, if a property unexpectedly loses tenants or sustains substantial damage, there is potential for suspension of cash flow distributions;
 Impact of fees/expenses – Costs associated with the transaction may impact investors’ returns and may outweigh the tax benefits

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