Tag Archives: commercial real estate

NPV, IRR, FMRR, MIRR, CpA – Stirring the Alphabet Soup of Real Estate Investment, Part 1

Posted on February 14, 2008 by Frank Gallinelli

Real estate investing is all about the numbers. In Part 1 of this article you’ll learn about two important metrics; Net Present Value (NPV) and Internal Rate of Return (IRR). Continue reading →

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Understanding Net Operating Income (NOI)

Posted on March 15, 2007 by Frank Gallinelli

Everyone in business or finance has encountered the term, “net income” and understands its general meaning, i.e., what is left over after expenses are deducted from revenue. With regard to investment real estate, however, the term, “Net Operating Income” is a minor variation on this theme and has a very specific — and critical — meaning. Continue reading →

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“Love Your Hat!…” What is Your Lender Really Looking at When You Apply for a Commercial Mortgage?

Posted on February 15, 2007 by Frank Gallinelli

When you purchase a piece of income-producing real estate you typically need to secure mortgage financing to complete the deal. It can be helpful and sometimes essential if you know what your lender is looking at when underwriting that loan. If you guessed that he or she is not admiring your millinery, you qualify to read on. Continue reading →

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How to Estimate Resale Value Using “Cap” Rates

Posted on January 5, 2007 by Frank Gallinelli

How do estimate the value of income-producing real estate? This article discusses the income-capitalization method, aka “capitalization rates.” Continue reading →

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Rate of Return on No Money Down (and Other Tales from the Deep Woods)

Posted on July 10, 2005 by Frank Gallinelli

Why can’t you figure out the rate of return on a zero-cash-down investment? Continue reading →

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