The ultra-wealthy don’t buy commercial real estate just for appreciation. They buy it because they understand one simple principle that most investors overlook:
👉 It’s not just what you pay — it’s the spread between what you earn and what you borrow.
That spread is called cap rate arbitrage, and it’s one of the fastest ways to scale wealth through leveraged real estate.
Cap rate arbitrage happens when you buy a property at a higher return (cap rate) than the cost of the debt you use to finance it. It’s the difference between the yield your property produces and the interest you’re paying the bank.