Real Estate Investment: Overview
Free CFA Level II lesson in Alternative Investments. 12 min read, ~1,869 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...
Read the full lesson, free →
Worked examples and practice. Free with a free account, no card.
What this lesson covers
- Content
- Example 1
- Example 2
- Common Mistakes
- Check Your Understanding
- Exam Shortcuts
Learning objectives
- real estate overview
Browse all free CFA Level II lessons or jump into free CFA Level II practice questions.