How to Make $1,000,000 Dollars in Commercial Property
How to Qualify for Millions Worth of Mortgages in Canada
Let's assume a cap rate of 5%.
Value = Net Operating Income / Cap Rate
$1,000,000 = NOI / 5%
NOI = $1,000,000 x 5%
NOI = $50,000
Increase a property net operating income by $50,000 dollars, the value of your property just went up $1,000,000.
If this is a foreign language to you, watch the video above. The second half goes into the math of commercial.
Residential Real Estate is not the same as Commercial Real Estate
|
|
|
|