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