The Price is What You Pay, and the Value is What You Get

In this wide-ranging podcast Joseph discusses profit and loss statements as the means to determine NOI, then direct capitalization of the NOI as a credible method of valuing commercial real estate. Yet, there is more to successful investing than simple “number crunching”. Investors purchase commercial real estate primarily for what it provides them, namely the value of the expected financial returns, and not the property’s price. At the end of the day, real estate investment success doesn’t come from buying good assets, but rather from buying good assets well. (Based on Joseph’s manuscript and seminar presentation of “Financial and Investment Analysis for Commercial Real Estate”)

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Joseph Petrole, CCIM, MAI