What is NOI - Real Estate with Grant Cardone

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. so if loopnet is the garbage dump, where should you be looking for multi family ?
2. Uncle G. First of all I want to thank you & your team for your passion & obsession in giving us endless advice. You guys are really 10X machines! I love listening/watching your shows every time I have the chance whether I am on my way to work or back home for more than 2 months now. I totally agree with you. I am still an employee but I'm starting looking for deals that make sense according to your advice. I know Philippines market is far different from the US though your numbers are universal & does work anywhere. I am telling my family & friends about you. I know your goal is to simply help people all over the world. We love you from the Philippines! ❤
3. size of the dill
4. Value, value, value and more valueeeeeeeeee! Oh yeah, and more value
5. Grant, at 41:45 are you taking a 10-12% from the 5 million or 20 million?
   I would think the ROR would be on the value of the property, which is 20 million, minus the cost of debt of 15 million, giving you the NOI.
   
   Thanks for providing the best real estate show on the planet.
6. How do you get 460,000 I thought it was 750,000 - 190,000 but that equals = 560,000 Could you tell me how you got 460,000 this number is confusing me?
7. Grant what is the reason you don't like brick? I missed that reason!! Also can you do a video on your 16 violation or give me the link to a video you have already done that has this please?
8. So wtf are we supposed to live in? I don't want to live in an apartment complex, I want a yard for my sheet.
   Any suggestions sir?
9. can Canadians invest w/ you guys? 100k USD?
10. I watch his real estate videos like it's my religion. Plus his energy keeps you hooked!
11. I'm loving these real estate videos with grant cardone!
12. great stuff cool!
13. Grant!!! BOBA!! love your books =D, please do one on real estate specifically please.
14. I only invest in stocks because that is my area of expertise but you my friend have horse sense. good video
15. Thxxxxx!!!!!+++:))))
16. Thxxxxx!!!!!+++:)))))
17. Best!!!!!+++:))))
18. Greaaat!!!!!++++:))))
19. Best!!!!!+++:))))
20. Yaaawesome!!!!!!+++:))))