NOI

CFA Level II
#1

Band of investment method - when leverage increased? Property 3 has the higher cap. rate, due to recapture of dep premium

#2

you’re right on both. though the latter was due to negative growth

#3

Slash Wrote: ------------------------------------------------------- > you’re right on both. though the latter was due to > negative growth Neg growth = recapture of higher dep. cost, same meaning

#4

do you remember the value determined by the two methods?

#5

well you learn something everyday. my brain checked out saturday at 5pm

#6

one was 5.4

#7

first one something like 5.34 vaguely remember - the one used with gross multiplier and i think - just think one was 7 mil something

#8

does gross multipler and direct income cap method provide the same results? i think they do , but not sure

#9

Not really I guess unless P/E multiple and EBITDA multiple method give you the same answer (joking)

#10

i think most ppl are screwed in alternative investment :slight_smile:

#11

rjs157 Wrote: ------------------------------------------------------- > does gross multipler and direct income cap method > provide the same results? > > i think they do , but not sure I didn’t understand this one exactly - I know that GM is higher than NOI, but is it necessary higher than the quoted selling price?? I don’t think you can make that assumption. So I put No for that and yes for higher than NOI.

#12

was it warehouse property which was subject to higher depeciation?

#13

i put yes for same and yes for higher than NOI, b/c “gross income” is before tax??? who knows if I got this write…praying

#14

Even after reading the text I can’t figure out the question about depreciation. The only thing I could figure out is that in the chart in CFAI, when they talk about ways to make money from the investments, all of them except for WAREHOUSES had capital APPRECIATION.

#15

neg growth lost value, I think first nw was around 5 something and second was 7.22 something…