*Correction* NOI = Effective Gross Income - OpEx. In the video (1:28), you stated that NOI = Gross Rental Income - OpEx. EGI includes a vacancy factor while GRI does not. To accurately and safely underwrite a property, make sure to factor in a vacancy rate of at least 5%.
@jacobfloyd69292 жыл бұрын
Great beard… I trust him
@TylerCauble2 жыл бұрын
Haha it’s all in the beard!
@jillyanmacmorris51762 жыл бұрын
This was so helpful and understandable. Appreciate the calm, kind spirit you bring! I enjoy listening to this kind of video!!
@TheQuarterbackX2 жыл бұрын
Wow. I thought I would be familiar with most of the terms, but turned out I hardly knew any of them. Only knew maybe two or so out of the whole bunch. Since, I had to watch multiple times and sure I wanted to watch multiple times more.
@TylerCauble2 жыл бұрын
It needs its own dictionary! Haha
@nicolasvalenzuela62652 жыл бұрын
I enjoyed the video, clear in the explanation and was able to caught my attention for the whole vídeo
@chinoguarcas42052 жыл бұрын
Great video, I'm gonna save it so I can watch it over and over
@TylerCauble2 жыл бұрын
There we go! 🤙🏼
@kjohri2 жыл бұрын
Great video..clear, concise and to the point.
@TylerCauble2 жыл бұрын
Boom! Appreciate that
@katymcdowell1 Жыл бұрын
Great video Thank you
@beauty4u132 Жыл бұрын
Thank you so much !
@thekingdomofelelyonprayer Жыл бұрын
THANK YOU
@soyourrealtor Жыл бұрын
Amazing help
@surn65512 жыл бұрын
Excellent
@AkshayMmeledath2 жыл бұрын
nice video
@TylerCauble2 жыл бұрын
Thank you, Akshay
@bryzon5592 жыл бұрын
ROI can also stand for retail office industrial. This is great content and very helpful. I am new to CRE and am an assistant to an appraiser so this is all perfect for me to learn. Thank you!
@TylerCauble2 жыл бұрын
I’m glad you enjoyed it!
@teslarex Жыл бұрын
Great overview!
@ryanwalsh3966 Жыл бұрын
Me and a couple of my veteran buddies are in Clarksville Tennessee looking to get into commercial real estate. Is there any chance that You would be willing to mentor? And I don’t mean something for nothing
@Walina-gv9ph Жыл бұрын
Cap rates are not a return. Cap rates measure value. The formula is V=i/r In a 5 cap market investors have paid $20 for NOI. In a 10 cap market they paid $10. Where is the "return"? You are misinforming people.
@Joe_Foley7 ай бұрын
The “return” is shown if you treat it like you paid for the property in full. For example, if the NOI is $100K and the Purchase Price is $1M, the cap rate would be 10%. This would mean that if you paid for the property in full ($1M in cash), your “return” would be 10% annually since it would take 10 years to make back your investment of $1M. It looks like you are misinformed…
@Walina-gv9ph7 ай бұрын
@@Joe_Foley Cap rates NEVER include financing! They measure what investors HAVE paid for NOI. How would you know if a property was bought with cash or not? Geez. Now you are saying cap rates measure time!!! Here's a question I'd like to see you try to answer, where are you getting the value to calculate a cap rate?
@Walina-gv9ph7 ай бұрын
@@Joe_Foley 1. A cap rate is not a return metric. 2. The cap rate is a valuation metric. 3. The cap rate is the same if you pay cash or finance 100%. 4. Cash on Cash is a return metric. 5. If you do not use leverage then the CoC return will be the same as the cap rate by happenstance. 6. But they measure different things. 7. The cap rate will measure the value of NOI. V=i/r is the formula. 8. If you buy $1 NOI at 5% cap rate you paid $20. If you bought at a 10% cap rate you paid $10. 9. f you use cap rates incorrectly and pay $20 in a $10 market then your cash on cash without leverage is 5%. BUT you overpaid by double!!! Still think you will be getting a 5% CoC return? 10. NOPE!