Real estate math is simple: add, subtract, multiply, divide.
There’s no complex math like trigonometry, algebra or exponents.
Frank Gallinelli, Ivy League Professor of Real Estate Development at Columbia University in New York City, joins me to talk real estate numbers.
Net Operating Income (NOI) estimates current market value of a property.
NOI is rent minus VIMTUM. It does not include Principal and Interest.
Your Debt Coverage Ratio (DCR) had better be greater than 1. You typically need a minimum of 1.2 to 1.25 to qualify for a property.