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14 Cards in this Set
- Front
- Back
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NOI
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Rent(1-Vacant%) - real estate taxes - maintenance - other
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Income Property Analysis
Market Extraction = |
.............NOI...............
ME = ---------------------------- .....Market Value (MV) |
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Income Property Analysis
Gross Income Multiplier Technique |
MV = Gross Income * Income Multipler
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Income Property Analysis
Gross Income Multiplier |
Sales Price
---------------------------- Gross Income |
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Direct Income Capitalization
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.........NOI.........NOI
.............1...........1 MV = --------- = -------- .0..... K - g ....... r K-g = capitalization rate (r) |
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ERAT definition
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Equity Revision after taxes
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ERAT equation
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ERAT = Net Selling price - mortgage balance - taxes on sale
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Raw Land
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Passive
Illiquid Speculative |
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Wharehouse
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Passive
Medium liquid Tax shelter |
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Shopping Center
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Medium Active Investiment
Low liquid For wealthy investor |
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Apartments/Office Buildings/Hotels/Motels
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Active Investiment
Medium liquid Tax shelter |
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Taxes Payable
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Taxes Payable = (NOI - Dep - i) * t
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Cash Flows after taxes (CFAT)
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CFAT = NOI - i - income taxes
NOI has real estate taxes included in it |
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Equity Reversion after taxes
ERAT = |
ERAT = Net Selling Price - mortgage balance - taxes on sale
Net Selling Price = [Selling Price - Selling Costs] |
