Hassle-free Cashflow Minute Lesson 3: Calculating Income: AGI, GSI, NOI

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Hassle-free Cashflow Minute Investor Educational Series by Professional Investor / Developer David Campbell www.HassleFreeCashFlowInvesting.com ©2011 All Rights Reserved Lesson 3: Gross Scheduled Income (GSI) Adjusted Gross Income (AGI) Net Operating Income (NOI)

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Real Estate Investor Training Video. Lesson 3. Understanding real estate math will make you a better investor. Understanding income types: GSI, AGI, NOI

Transcript of Hassle-free Cashflow Minute Lesson 3: Calculating Income: AGI, GSI, NOI

Page 1: Hassle-free Cashflow Minute Lesson 3:  Calculating Income:  AGI, GSI, NOI

Hassle-free Cashflow Minute

Investor Educational Series by Professional Investor / Developer

David Campbell

www.HassleFreeCashFlowInvesting.com©2011 All Rights Reserved

Lesson 3: Gross Scheduled Income (GSI)Adjusted Gross Income (AGI)Net Operating Income (NOI)

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Gross Scheduled Income

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Gross Scheduled Income (GSI)All income from the property assuming 100% occupancy at

market rent with no rent concessions

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Case Study: Gross Scheduled Income

Market Rent: $1,000/month

$1,000 x 12 mos = $12,000 GSI

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Adjusted Gross Income (AGI)

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Adjusted Gross IncomeGross Scheduled Income less

vacancy rate rent concessions

loss to lease

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Case Study: Adjusted Gross Income (AGI)

$12,000 GSI-6% vacancy rate

-4% rent concession-2% loss to lease

$12,000 GSI x 88% = $10,560

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Net Operating Income (NOI)

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Net Operating IncomeAdjusted Gross Income less

Operating Expenses (see lesson 4)

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Case Study: Adjusted Gross Income (AGI)

$10,560 AGI- 50% operating expenses (see lesson 4)

$5,280 NOI

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David Campbell$500 million of real estate

experience

real estate investor / developer houses / apartments

retail / office / land / resortcondos / condo conversion

financial strategist