The Terms you need to know

The ARV (or After Repaired Value) definition states the following: the value of a property after it has been rehabbed, not in its current condition.

In real estate, purchase price refers to the total selling price of a property which includes the down payment and the principal on the loan.

Return on Investment (ROI) is the measure of how much money you make over the life of holding your property. How you realize your real estate ROI can vary based on the type of investment property you buy. In some cases, you will have multiple streams of revenue that contribute to your ROI

Net operating income (NOI) is a calculation used to analyze the profitability of income-generating real estate investments. … NOI is a before-tax figure, appearing on a property’s income and cash flow statement, that excludes principal and interest payments on loans, capital expenditures, depreciation, and amortization.

Thank you and have a great day.

Roland Kier
CEO – America’s Best Smart Realty
Principal Broker – Georgia/Florida/Alabama Markets
roland_kier@americasbestsmartrealty.com

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