Investment Real Estate Terms



When pricing a property we carefully balance out Cost per Square foot, Gross Rent Multiplier, CAP Rate, Cost Per Unit, and Cash Flow and compare with the most comparable sales in the area.


NRSF= Net Rentable square feet


Cost per NRSF= Price/NRSF


Cost per unit= Price/# of units


Expense/NRSF= Total Annual Expenses/NRSF


Expense per unit= Total Annual Expenses/# of units


GRM= Price/Gross Income


CAP= Net Operating Income/Price


Pre Tax Cash flow= Profit after paying all expenses including loan. (Percentage is that #, divided by the down payment)


If built after 1978 in Los Angeles= NON Rent Control


Pro Forma= Rent you could get for that unit if it was vacant today



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