What is NOI - Real Estate Investing Made Easy with Grant Cardone Sneak Preview

The NOI is Net Operating Income. You have income, expenses, and then you have NOI. 5 units and above are dependent on NOI. It’s what the price is based off of, what the banks look at, and what the cap rate is made from. To determine the NOI you take Gross income minus expenses = NOI. The higher the NOI the more cash flow it’s going to produce. 3 questions to ask in multi-family: 1.How much will you pay for the property? 2.How much will it operate for? 3.How much can you sell it for when you exit? You can make money with any of these three ways, but ideally all three. Keep in mind that as soon as something comes on the market and it becomes a good deal with a good NOI, you often have over 10 or more buyers coming in immediately. Loopnet is the garbage dump for properties that aren’t selling. As an example, there is a deal for 14 units in Athens, Georgia. It costs 750K so you’d put 190K down and finance 460K. It’s 70% occupied. The NOI is 45K and the debt would be 32K annually. That means you’d basically be putting 190K at risk to make $1300 a month. That deal probably isn’t worth it! The bottom line is you have to know what you are doing with any investment. GrantCardone.com http://www.grantcardone.com

Comments

1. very glad I watched your video today...maybe you'll like some of the videos on my channel? I am in the Chicago real estate market
2. Grant & Team: Do you offer a real estate specific training package? I am a new to business broker who specializes in multifamily properties. reid@naisouthcoast.com
3. A Masterclass in real estate investing! This is an education at the highest level, by the best teachers (who really KNOW their stuff) explained in a way that everyone can understand. Great job yet again Mr GC & Captain Ryan!