Property Level Returns & Investor Level Returns
Property Level Returns
These ratios measure the performance of the specific property returns and do not require any assumptions specific to who’s investing in it.
Common Property Level Return measurements are Net Operating Income (NOI), Capitalization Rate (Cap Rate) & Gross Rents Multiplier(GRM). The GRM is used in a variety of ways- If you’ve ever heard somebody say they use a 1% rule, or any percent of the annual rents to calculate what they should pay for an investment- that’s a variation of the Gross Rents Multiplier.
Investor Level Returns
Investor Level Returns incorporate data from the property performance of a real estate asset and then integrate Investor specific data such as $ invested, loans specifics such as LTV, Interest rates and amortizations, anticipated capital improvements, Cost Recovery schedules of real and personal properties, etc. The point is to be fully comprehensive so that we can calculate what our true Return on Investment is.
To learn more, please visit the Investments page on our website.