Please Check My Notes for NOI and Real Estate Valuation

Help check my little note, please: If we are valuing a property using the direct cap method, you use NOI/Cap Rate

If we are using the NAV method, we use NOI (1+g) / Cap Rate

Is this correct? Thanks and good luck.

yes, but you may need to adjust for non-cash rents if calculating NAVPS

So you don’t use NOI 1 for direct cap rate?

You do not use NOI 1 for Direct Cap Method according to CFAI Mock exam, morning, question #26. I get confused and have gotten it wrong on just about every mock (whether to use NOI 1 or not). Of course, the wrong answer will be one of the three selections and you’ll feel like the man when you get it on the exam.

Is there an answer to this? When shall we use NOI and when NOI * (1+g) ?