RE Finance: Direct Capital...

Learn how to develop a reconstructed property operating statement to determine net operating income (NOI) and to convert a single-year’s NOI into an estimate of property value. Topics covered include risk vs return concepts; property types and classifications; lease basics; market rent vs contract rent; estoppel certificates; potential gross income (PGI); vacancy and loss; miscellaneous income; effective gross income (EGI), fixed and variable operating expenses (OE); confirming expenses with due diligence; capital expenditures (CAPX); net operating income (NOI); overall or going-in capitalization rates; direct market extraction method using comparable property sales; direct capitalization and income multipliers. Cases and Excel will be used throughout this course.