Potential Gross Income (PGI) and Effective Gross Income (EGI).
Understanding how capital flows between these two markets is the foundation of successful real estate underwriting. The Pro Forma Fundamentals peter linneman real estate finance and investments pdf
Distinguishing between NOI and Net Cash Flow (accounting for tenant improvements, leasing commissions, and capital expenditures). Debt and Equity Structuring Potential Gross Income (PGI) and Effective Gross Income
Furthermore, Linneman updates his book annually to reflect changes in interest rates, tax laws (like the 2017 Tax Cuts and Jobs Act), and accounting standards. An outdated PDF from 2015 will contain that could ruin a pro-forma. peter linneman real estate finance and investments pdf