Calculating NOI
by: William Moore
What it means- Net Operating Income or NOI as it is commonly called is a property's income after being reduced by vacancy and credit loss and all operating expenses. It is a property's Gross Operating Income(GOI) less the sum of all operating expenses. NOI represents a property's profitability before consideration of taxes, financing, or recovery of capital. It can be thought of as the number of dollars a property returns in a given year if the property is purchased for all cash and if there is no consideration of income taxes or depreciation. NOI is one of the most important calculations you as a Real Estate professional will make in regards to commercial real estate investment and finance and one of the most important questions commerc...
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