Real Estate Investment: Overview
Free CFA Level II lesson in Alternative Investments. 12 min read, ~1,786 words.
NOI = PGI - Vacancy = EGI - Operating expenses. Excludes debt service, capex, and income tax. Property value = NOI / cap rate. Inverting this formula is the single most costly exam error. Terminal cap rate going-in cap rate. DCF terminal value uses Year N+1 NOI, not Year N...
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What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Key Takeaways
- Exam Shortcuts
Learning objectives
- real estate overview
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