Question
The Average regional Gross Rent Multiplier (GRM) in the Real Estate Pro-Forma is significant as it provides a benchmark for comparing the value of properties in the same region. It is calculated by averaging the GRM of several properties in the same area. This average GRM can then be used to assess the performance of your real estate investments in that region, helping you to understand if your properties are under or overvalued compared to others in the same area.
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The 'General information' section is where essential property details are entered, such as the purchase date, property value, and the number of units acquired. This section also requests the 'Average regional GRM'. The Average regional GRM calculates an average GRM for properties in the same region. To assist in its calculation, the template includes a table under the 'Training' tab where you can enter data for six properties in the same area to obtain the Average regional GRM.
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