Issue 6 Maximize Your NOI

The third area of Terms you will need to master is maximizing your Net Operating Income (NOI). In a sense this is the ability to run your real estate investments at a profit. NOI is what you have left from your Gross Rental Income after you have covered your vacancies and paid your operating expenses. This is detailed in the Terms Worksheet: Buy & Hold (see the chart on page 236). Actually, from an operating point of view there are only rental income and expenses. Vacancies simply reduce your rental income. Thus, there are three things you can do to maximize your Net Operating Income: increase gross rental income, control expenses, and minimize vacancies. Let's take them in that order.

Maximize Your NOI

Real Estate Investment Secrets

Real Estate Investment Secrets

Discover the Jealously Guarded Insights of Real Estate Tycoons and Hot Dealers! Back in the days of the wild, Wild West, when easterners traveled across this vast country looking for opportunity in the newly opened territories, they were often referred to as a ‘tenderfoot’.

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