WEBVTT - created by www.planease.com

1
00:00:00.300 --> 00:00:05.300
The NOI divided by a property value
is simply the net operating income divided

2
00:00:05.400 --> 00:00:11.149
by the property value. It's also known
as the overall cap rate. It can be a test

3
00:00:11.250 --> 00:00:18.109
of the assumption for the appreciation
of the property. Here. We noticed that

4
00:00:18.209 --> 00:00:23.760
his tent all the way across, and that's
because it's it's basically a cap rate

5
00:00:24.149 --> 00:00:31.079
number. And what we did on this
property, as we said, that the. Sales price method

6
00:00:31.180 --> 00:00:35.850
was going to cap last year and why
a 10 percent cap rate and when we go

7
00:00:35.950 --> 00:00:43.459
to the income statement, the NY.
Property value is really a proof of that,

8
00:00:43.880 --> 00:00:50.020
because what it's saying is it took
this year's net operating income and used a 10

9
00:00:50.119 --> 00:00:57.409
percent cap rate to create the sale
value. And then the wider property value divides

10
00:00:58.220 --> 00:01:07.050
the. And why buy the property value you get
the 10 percent? However, if we go back

11
00:01:07.589 --> 00:01:12.980
and change the sales price method to capitalize
next year in Hawaii and go back

12
00:01:13.080 --> 00:01:18.650
to the income statements now to produce
a sale value, we're taking the next year's

13
00:01:18.750 --> 00:01:25.120
analy shown here to create this
number. And when we look at the Nevada property

14
00:01:25.220 --> 00:01:32.190
value. We're going to be looking at the current
year in Hawaii. And dividing

15
00:01:32.290 --> 00:01:35.879
it by the property value that
was generated by next year, in a way,

16
00:01:36.309 --> 00:01:39.669
and you're seeing the property of the anyway
the property value are changing

17
00:01:40.449 --> 00:01:47.489
each year. Another thing, it can be
useful for us if we exit, we can do the sales

18
00:01:47.589 --> 00:01:55.989
price method as a appreciation. We'll
see appreciates a four percent. We go back

19
00:01:56.089 --> 00:02:02.139
to the income statements. Now, the sale
value is not related to the NRA at all,

20
00:02:02.239 --> 00:02:08.199
it's being a growing
appreciating by a percentage each year. And then

21
00:02:08.300 --> 00:02:14.379
when we look at the Nevada property
value, this is showing us based on the net

22
00:02:14.479 --> 00:02:21.949
operating income divided by the sale
value. And it shows us the. The percentage

23
00:02:22.550 --> 00:02:28.550
each year. What would be the cap
rate that would create that sale value?

24
00:02:30.190 --> 00:02:38.169
So is it useful? It really depends on whether
you want to see it or not, you can

25
00:02:38.350 --> 00:02:43.449
turn it off by clicking on the menu
item and ratio's. You could turn out on and off

26
00:02:43.449 --> 00:02:45.009
any of the races that we're seeing here.