064: The Truth About NOI

Real Estate Investing

Content provided by Grant Cardone TV. All podcast content including episodes, graphics, and podcast descriptions are uploaded and provided directly by Grant Cardone TV or their podcast platform partner. If you believe someone is using your copyrighted work without your permission, you can follow the process outlined here https://player.fm/legal.

6+ y ago 51:12

MP3•Episode home

Archived series ("Inactive feed" status)

When? This feed was archived on October 11, 2019 01:32 (4+ y ago). Last successful fetch was on May 24, 2019 18:35 (5y ago)

Why? Inactive feed status. Our servers were unable to retrieve a valid podcast feed for a sustained period.

What now? You might be able to find a more up-to-date version using the search function. This series will no longer be checked for updates. If you believe this to be in error, please check if the publisher's feed link below is valid and contact support to request the feed be restored or if you have any other concerns about this.

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.

58 episodes

#Real Estate #Industries #Trading #Grant Cardone #Entrepreneur #Wealth #Money #Investing #Multifamily #Grant #Cardone #Grant Cardone TV #Business #Succession #REI