- If theres a lack of comparable properties, we shouldnt use the Gross income multiplier technique when valuing a property. Does this imply that we cant use the market extraction method to find the cap rate, since its also dependent on comparable properties? 2) How do you choose between the band-of-investments method and the market extraction method?
that is a drawback to both, while they might be “stale,” you can always adjust the multiple as in equity analysis but with the extraction method im not sure…
for those of u who have qbank- check #104161 part 3. Here you are told to choose between GIM and direction capitalization technique. After that, u must choose between band of investments, bulid up method and market extraction. I doubt we’ll see anything like this in june, but its best to prepare for the worst