Net Income Multiplier

The Net Income Multiplier (NIM) is a factor used to estimate the market value of income producing properties. It is equal to the market value of a property divided by the net operating income or NOI.

NIM = Market Value/Net Operating Income

Market Value = NIM * NOI

The net-income multiplier and the cap rate are financial tools used to estimate the market value of income properties. The cap rate and the NIM produce identical results when estimating the market value of an income property since the net income multiplier is the inverse of the cap rate.

When using the capitalization rate and the net-income multiplier to estimate the value of an income property, accurate and current financial data for comparable sales of similar properties is required.

Member Posts

No topics exist.

Contribute to this page

Message Title:

Your Message Text:

Membership

Members receive access to a variety of real estate resources not available to the general public.

As a member you can:

• Download Excel real estate proformas, construction checklists, construction contracts, real estate development schedules, and sample construction contracts.
• Upload files such as contracts, schedules, and proformas to share with other members
• Post discussion topics, write commentary, and reply to posts in the Members Forum
• Create a member profile, with your photo, your resume, and information on your networking and real estate goals
• Browse member profiles and find other entrepreneurs in your area
• Send and receive messages to and from other members on your personalized profile page
• List or create a real estate investment club(s) with details including your clubs description, contact information, meeting times, event information, and more
• Browse the database of real estate investment clubs, and find clubs in your area
• Reply to messages sent to your club from Members

Use our contracts and scopes of work for your renovation, remodeling, home-renovation projects, and new-home construction projects. Become a member and receive access to all of these sample construction contracts free: cabinets, ceramic tile, clean up/ move in, concrete slab, drywall, electrical wiring, flatwork patios, flooring, heating and air conditioning, low voltage, masonry fencing, painting, plumbing, and roofing. These contracts will help you control the quality of the work of your specialty contractors.

Become a member and develop your own customized proformas from our templates. Use your customized proformas to:

• Help secure competitive loans for your real estate investments
• Raise capital for your real estate investments
• Strengthen your bargaining power and persuade the owner and selling broker to accept your offer
• Keep records and update your proformas over the time span of your real estate projects

The Real-Estate-Proforma.com Members Area will be updated periodically to include more resources and links to online real estate services.

Screenshot of Members Download Area