A quick description of Net Operating Income, Capitalization Rate, and Price – What they are, how they interact with each other, how to use them, etc. If I ha…
15 Responses to “Commercial Real Estate – NOI, Cap Rate, & Price”
This is perfect! Amazing video with a great over the shoulder view of
exactly what you’re doing. Not only that, but you also explain everything
one step further so it’s not you’re just doing it because… You say you’re
doing it because of this.
~Well done, Adam
I’m currently renting a warehouse for my business but my landlord is
raising his rates. I’d rather keep renting here since I spent a lot on
utility upgrades but his new rates make it more economical just to buy a
place a make mortgage payments, even considering the cost or removing all
my upgrades. The info here is useful to me since I didn’t know much about
how commercial property is valued. I just need a place to continue
operations.
Too basic explanation but to the point. There are more complex computations
on valuing commercial properties based on the lease type,residual value and
exit yield/cap rate computation ( why 8, 9 or 12% cap rate is derived).
Thank you for this. I usually get confused that why an asset that has a
lower cap rate has a higher value. And how does the term asset yield plays
to determine cap rate, is that an inverse concept of a cap rate? Please
correct me if I’m wrong. Thank you again.
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This is perfect! Amazing video with a great over the shoulder view of
exactly what you’re doing. Not only that, but you also explain everything
one step further so it’s not you’re just doing it because… You say you’re
doing it because of this.
~Well done, Adam
Very clear explanation…Thanks!
thank you…
Expecting some advance information but overall valuable resourceful video.
Thanks.
I’m currently renting a warehouse for my business but my landlord is
raising his rates. I’d rather keep renting here since I spent a lot on
utility upgrades but his new rates make it more economical just to buy a
place a make mortgage payments, even considering the cost or removing all
my upgrades. The info here is useful to me since I didn’t know much about
how commercial property is valued. I just need a place to continue
operations.
Too basic explanation but to the point. There are more complex computations
on valuing commercial properties based on the lease type,residual value and
exit yield/cap rate computation ( why 8, 9 or 12% cap rate is derived).
Tobey West
Info
Thanks for the info! It was very helpful
Thanks man! This video breaks everything down nicely
Thank you for this. I usually get confused that why an asset that has a
lower cap rate has a higher value. And how does the term asset yield plays
to determine cap rate, is that an inverse concept of a cap rate? Please
correct me if I’m wrong. Thank you again.
Thanx
Hello. Thank very much! What if you don’t know how much the house is sold?
How do you find the cap rate then? Thanks!
Thx for great ino