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Unformatted text preview: you can attain your investment goals. b. How do you know if you pay X amount for a property that you can get the return you desire on your investment? Critical to this is the NOI calculation. Also, looking at comparable sales and, if applicable, applying the income approach method to valuation, are all ways to help determine the type of return on a potential investment. c. Is there some way to calculate the maximum you can pay for an investment and still achieve your investment goals? Try using the derived capitalization rate: which involves knowing the terms of financing available to you and the return you want. Putting it together with the information and approaches outlined above (and in his article) should provide you with a weighted average to the indicated value of an investment property. See attachment. 1...
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This note was uploaded on 04/25/2010 for the course FIN 497 taught by Professor Clements during the Spring '10 term at University of Missouri-Kansas City .
- Spring '10