Investing Terms in Real Estate (GPI, EGI)

Investing Terms in Real Estate (GPI, EGI)Gross Potential Income (GPI)Effective Gross Income (EGI) Gross Income represents what a building produces if it is at 100% occupancy. It does not include miscellaneous income. Example: An office building has 10,000 square feet of rentable space and rents for an average of $12.00 per square foot. Gross Potential Income (GPI) for the building is $120,000 per year. Effective Gross Income (EGI) Since a multi-tenant building will always have some turnover, the industry uses a nominal vacancy factor to reflect that reality. This factor varies from 5-10% depending on the market and who is evaluating the building. Subtract the vacancy allowance for the gross income and you are left with the Effective Gross Income (EGI). The Effective Gross Income equals Gross Potential Income (GPI) less the vacancy factor. Thank you for your time and let me know if I can help you with your investments. Give me a call today and I will help you find the perfect place for you. Joan Wilson (Realtor, SRES, Ecobroker, Certified REO and Short Sale/HAFA Specialist) California Cool 4 Sale Sotheby"s Direct Phone: 760-757-3468 If you are looking to buy or sell Real Estate give me a call, I will be glad to help you. Let me know if I can help you with any of your real estate needs or questions! Joan Wilson (Realtor) California Cool 4 Sale Pacific Sotheby's International Realty 760-757-3468 CA BRE # 01341483 Find your dream home: http://JoanWilsonRealtor.com

Comments