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What is a GIM?
GIM stands for Gross Income Multiplier, which is also known as Gross Rent Multiplier (GRM). This is a method used to value plexes/apartments by dividing the price of the property by the current rental income. If the total current rental income is $20,000 and the asking price is $240,000 then the gross income multiplier =12. […]
What is a CAP rate?
A Capitalization Rate (CAP rate) is the percentage rate of return based on a piece of property’s income. This is the income divided by price. A property that costs $1,000,000 with a net income of $120,000 would have a CAP rate of 8.30 %.
What does LTV stand for?
LTV (loan-to-value) is simply the amount of the loan as a percentage of the total purchase price. A loan of $200,000 for a property worth $400,000 would mean an LTV of 50%.