Band of investment method - when leverage increased? Property 3 has the higher cap. rate, due to recapture of dep premium
you’re right on both. though the latter was due to negative growth
Slash Wrote: ------------------------------------------------------- > you’re right on both. though the latter was due to > negative growth Neg growth = recapture of higher dep. cost, same meaning
do you remember the value determined by the two methods?
well you learn something everyday. my brain checked out saturday at 5pm
one was 5.4
first one something like 5.34 vaguely remember - the one used with gross multiplier and i think - just think one was 7 mil something
does gross multipler and direct income cap method provide the same results? i think they do , but not sure
Not really I guess unless P/E multiple and EBITDA multiple method give you the same answer (joking)
i think most ppl are screwed in alternative investment 
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.
was it warehouse property which was subject to higher depeciation?
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
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.
neg growth lost value, I think first nw was around 5 something and second was 7.22 something…