It can be done slightly differently, depending on who is calculating it. There are free NOI calculators online, and your broker will come into play here.
WHAT TO INCLUDE IN YOUR NOI
There are a few aspects that go into calculating this. Here are all the potential components. Company Income Operating Out of the Building (Gross Operating Income) This is your business’s yearly income. It doesn’t have to be generated from the building, but it makes sense to do it this way. This is how you can get an exact number on how much money the property is helping your company work.
Operating Expenses
These expenses are everything that goes to maintaining your property and paying off your loan. It also includes what you pay upfront, and your property taxes, property insurance, any maintenance fees or repairs, your construction (only for your first years), and utilities. It can also include other expenses such as accounting or legal fees.
Any Additional Income
This comes into play if you ever rent any space out of your building. I discussed the benefits of this in chapter 7.
WHAT NOT TO INCLUDE
Depreciation
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