33 KIP's for real estate investors

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Peter Drucker was often quoted saying “You can’t manage what you can’t measure.” This oversimplification might ignore some of the complexities of relationships in business, but it is very telling. Being able to measure what matters is important to business.

How do you use KPI’s?

One of the important aspects of using KPI’s is knowing when to focus on improving and monitoring what KPI. Since it will take effort to get accurate data and calculate some of these KPI’s, it is important to focus on KPI’s that are actionable.

Overall KPI’s

These overall KPI’s shed light into the whole real estate investment business. They are also important to understand since they are very relevant for bankers considering issuing a loan.

Cashflow

Cashflow is one of the most important KPI’s in any business. It can literally mean the difference between success and failure of your investments. The definition of cashflow is the income left after expenses.

Net Operating Income (NOI)

The net operating income is similar to cashflow except that it does not include debt service. It also does not include savings in capital expenditure reserve accounts.

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