GSI vs GOI vs NOI Gross Scheduled Income: Total scheduled income, not considering vacancies Gross Operating Income: Total income from rent Not considering expenses Net Operating Income: Usually shorted as NOI. Total net income after we remove vacancies and all expenses,...
Usually, yield is only based on rental income, whereas a total rate return includes capital gains. If you are trying to make a decision to buy or not a property both measurements are important Yield is similar to CAP RATE cap...
Investors do what is traditionally called BOE ( Back of the Envelope analysis). The GOAL of BOE is to quickly dismiss projects that do not make sense for our investment strategy. An example of a quick decision is: Property A price...
Commercial Real Estate Investing Advantages: Most commercial properties are rented with a NNN triple net lease and the tenant is responsible for all expenses. Commercial has also the great advantage that requires much less maintenance from the owner, most commercial retail...
Hard Money Loans: When you hear the words “hard money loans” (or “private money loans”), what’s the main thing that experiences your brain? If you think about “loan sharks” who deal with vague terms , those are mostly illegal. Some bad...
Why invest in real estate Investing is one of the most important things to become financially independent or build assets. You can invest in multiple financial instruments, but today we are focusing on real estate, and we will help you decide...
Absorption Rate in Residential RE Housing Inventory and month supply. Realtors can easily access the MLS and find the absorbtion rate. The absorption rate is calculated by dividing the number of homes that sold over the given period of time ( usually a...
Many beginners in real estate investment go to meeting or some sort of informal training. There always a couple of terms that come to surfice ARV ( After Repair Value ) ARV is the value of the selected property assuming it...
In residential Real Estate, the value of a property is not directly connected with the return on the investments. When you buy residential there are many factors you consider and the possible rental income is only one of those, probably a...
