Is there any clear distinction b/w Gross Income and Net Operating Income for real estate questions. What is the relationship between the two specifically? (ie is NOI dqual to Gross Income minus something specific?)
It’s used because usually you don’t know the NOI of people’s properties, but it’s quite easy to ask the tenants how much they are paying.
Are you thinking of q 38 or so in Schweser 3am? It’s an error…
there was a problem on book 6 that had us use NOI in place of Gross income in the gross income multiplier. any ideas as to why?
I asked that question to schweser, they said it was wrong never misuse NOI and Gross income multiplier unless questions stated so
NOI = Gross income less expenses. Gross income is simply the rents from the property. NOI you can think of as cashflow before taxes think Sales vs. EBITDA