Quote:
On 2004-11-30 08:37, wrote:
NOI(Net operating income) GOI(Gross operating Income)
= GOI - expenses= NOI( or profit)
Example, monthly rent is 750, Principal and interest on the loan is 225, taxes and insurance is 25. monthly maintenance is 50.
Then, 750(GOI) - 300(Monthly expenses) = 450(NOI) for the monthoscar1911,
Just a couple of corrections.
Gross Operating Income (GOI) is the scheduled annual rental income at 100% occupancy plus any other income the property generates such as income from a laundry room, vending machine, or garage space rental. Subtract a vacancy Allowance (maybe one month rent) from the GOI and you have Effective Operating Income (EOI), or,EOI = GOI - Vacancy AllowanceOperating expenses are things like property taxes, hazard insurance, maintenace, cleaning, leasing fees, advertising, utilities, trash removal, yard service, and some contribution to a replacement reserve. Operating expenses are the costs of owning the property free and clear and using the property for the production of income. Thus,Net Operating Income (NOI) = EOI - Annual Operating ExpensesNote that debt service (principal and interest) is not an operating expense. Debt service, if any, is paid out of the NOI. ThereforeCash Flow = NOI - Annual Debt Service[ Edited by NewKidinTown2 on Date 12/02/2004 ]
One of the best books that got me started on investing and having my own was Rich Dad, Poor Dad by robert Kiyosaki Eventhough he doesn't give you step by step models on how to get rich, he gives you a thought process that you need to take in order to get were you want to be.
I'm on the right track than, I have read Rich Dad/Poor Dad, and have Whitney's "Building Wealth" book. I'm also reading Rob Allen's "Creating Wealth". Any others that are good?
Carlton Sheets is a good one to start if your new to real estate. I bought mine for 250.00 but you can get an older one on ebay for cheap like 20 bucks
dive into the forums at tci and find the rei investing area{s} that interest you. once you have a direction you can go from there. welcome aboard........kenmax
You are on THE premier webforum for real estate investing! Look no further.
Most books will give you good general information on real estate strategies and concepts. I wouldn't necessarily rely on books for "step - by - step" type information as it takes about 6 months to a year for a book like that to go to print, and many of the strategies will be outmoded/changed.
[addsig]
It is very true on the books - most of them are generalized over. However, every single book I have read about real estate I have picked something up from. The way I look at it is, each book you read gives you a new tool in your tool belt.
I just recently read Ron Legrand's book - "How to be a quick turn millionaire" - it had a lot of the same junk you see in a lot of the other books - Hyping their courses. However, it had some good information towards the back of the book.
Other books that I have read that I have picked up good information from:
The weekend millionaire's secrets to investing in real estate by Roger Dawson/Mike Summey. - This has a great section on negotiation.
Real Estate LoopHoles by Diane Kennedy - it has a lot of good generalized information for taxes.
Flipping Properties by William Bronchick - its a good generalized book for flipping.
Financing Secrets of a Millionaire Real Estate Investor by William Bronchick - Gives you a good generalized overview of how to structure creative deals, etc.
Landlording by Leigh Robinson - Everything you want or need to know about landlording.
The Landlord's Kit by Jeffrey Taylor - Forms for landlording.
Remember, by reading books you typically will get generalized information and you have to sum up your own plans and so forth.
If you want a specific step by step, then pay the bucks to get courses. I have John Locke's course on Sub2 - very good.
Last but not least, read EVERYTHING you can on Creative Real Estate online. There is a lot of information to find.
Thanks for all the info everyone! I did know that books get outdated fast, which is why I asked about forums and mags. So far I am impressed with this set of forums, there seems to be a great deal of knowledge here, you all seem open to sharing knowledge and best of all you have kept the spam down too nearly nothing. This seems to be one of the better managed forums I have seen on any topic (I am new to real estate but I am a www forum vet.).
NOI(Net operating income) GOI(Gross operating Income)
= GOI - expenses= NOI( or profit)
Example, monthly rent is 750, Principal and interest on the loan is 225, taxes and insurance is 25. monthly maintenance is 50.
Then, 750(GOI) - 300(Monthly expenses) = 450(NOI) for the month
Thanks oscar1911 now that makes sense appreciate the help.
Quote:
On 2004-11-30 08:37, wrote:
NOI(Net operating income) GOI(Gross operating Income)
= GOI - expenses= NOI( or profit)
Example, monthly rent is 750, Principal and interest on the loan is 225, taxes and insurance is 25. monthly maintenance is 50.
Then, 750(GOI) - 300(Monthly expenses) = 450(NOI) for the monthoscar1911,
Just a couple of corrections.
Gross Operating Income (GOI) is the scheduled annual rental income at 100% occupancy plus any other income the property generates such as income from a laundry room, vending machine, or garage space rental. Subtract a vacancy Allowance (maybe one month rent) from the GOI and you have Effective Operating Income (EOI), or,EOI = GOI - Vacancy AllowanceOperating expenses are things like property taxes, hazard insurance, maintenace, cleaning, leasing fees, advertising, utilities, trash removal, yard service, and some contribution to a replacement reserve. Operating expenses are the costs of owning the property free and clear and using the property for the production of income. Thus,Net Operating Income (NOI) = EOI - Annual Operating ExpensesNote that debt service (principal and interest) is not an operating expense. Debt service, if any, is paid out of the NOI. ThereforeCash Flow = NOI - Annual Debt Service[ Edited by NewKidinTown2 on Date 12/02/2004 ]
thats pretty specific but a nice clear breakdown...
im going to write that one down...
One of the best books that got me started on investing and having my own was Rich Dad, Poor Dad by robert Kiyosaki Eventhough he doesn't give you step by step models on how to get rich, he gives you a thought process that you need to take in order to get were you want to be.
Rich dad is a good one for overall broad thinking with investing. I liked Russ Whitney's building wealth book when I first started.
GL
[addsig]
I'm on the right track than, I have read Rich Dad/Poor Dad, and have Whitney's "Building Wealth" book. I'm also reading Rob Allen's "Creating Wealth". Any others that are good?
Thanks!
Carlton Sheets is a good one to start if your new to real estate. I bought mine for 250.00 but you can get an older one on ebay for cheap like 20 bucks
Also John Locke has a course although it really isn't for the beginner he gives you his phone# and he does answer it. I just talked to him last week.
dive into the forums at tci and find the rei investing area{s} that interest you. once you have a direction you can go from there. welcome aboard........kenmax
You are on THE premier webforum for real estate investing! Look no further.
Most books will give you good general information on real estate strategies and concepts. I wouldn't necessarily rely on books for "step - by - step" type information as it takes about 6 months to a year for a book like that to go to print, and many of the strategies will be outmoded/changed.
[addsig]
It is very true on the books - most of them are generalized over. However, every single book I have read about real estate I have picked something up from. The way I look at it is, each book you read gives you a new tool in your tool belt.
I just recently read Ron Legrand's book - "How to be a quick turn millionaire" - it had a lot of the same junk you see in a lot of the other books - Hyping their courses. However, it had some good information towards the back of the book.
Other books that I have read that I have picked up good information from:
The weekend millionaire's secrets to investing in real estate by Roger Dawson/Mike Summey. - This has a great section on negotiation.
Real Estate LoopHoles by Diane Kennedy - it has a lot of good generalized information for taxes.
Flipping Properties by William Bronchick - its a good generalized book for flipping.
Financing Secrets of a Millionaire Real Estate Investor by William Bronchick - Gives you a good generalized overview of how to structure creative deals, etc.
Landlording by Leigh Robinson - Everything you want or need to know about landlording.
The Landlord's Kit by Jeffrey Taylor - Forms for landlording.
Remember, by reading books you typically will get generalized information and you have to sum up your own plans and so forth.
If you want a specific step by step, then pay the bucks to get courses. I have John Locke's course on Sub2 - very good.
Last but not least, read EVERYTHING you can on Creative Real Estate online. There is a lot of information to find.
Chris
Thanks for all the info everyone! I did know that books get outdated fast, which is why I asked about forums and mags. So far I am impressed with this set of forums, there seems to be a great deal of knowledge here, you all seem open to sharing knowledge and best of all you have kept the spam down too nearly nothing. This seems to be one of the better managed forums I have seen on any topic (I am new to real estate but I am a www forum vet.).
Thanks!
I read about 10 books before I started and the best one I found was:
The Unofficial Guide to Real Estate Investing, (2nd edit) by Strauss
It was the clearest, and most realistic of all that I read.
Glyn
I read the whole Rich Dad series. Personally, I think the best ones are the first "Rich Dad Poor Dad" and the one by Dolf DeRoos.
Millionaire Next Door in an interesting read
I read a few books my Trump (borrowed, don't remember titles)
Secrets of a Millionaire RE Investor
Also bought a book about RE investing by DeRoos, not from the Rich Dad.