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# Define Gross Income Multipliers (GIM) in Real Estate

## Gross Income Multipliers (GIM):

Gross Income Multipliers (GIM) is a way to figure out how much a property is worth compared to the money it makes. Imagine you have a lemonade stand that earns \$100 a month. If the GIM for similar lemonade stands is 10, you'd multiply the \$100 by 10 to find out how much your stand is worth: \$1,000. GIM helps us understand how a property ranks among others like it, or how much it's worth.

## Formula:

GIM = Property Sale Price / Gross Annual Income

In this formula, the Property Sale Price is the price at which the property was sold or is being valued, and the Gross Annual Income is the total money the property earns in a year, usually through rent or other income sources. By dividing the Property Sale Price by the Gross Annual Income, you get the GIM, which is a useful tool to compare and evaluate properties.

## Example:

Here's a working example: Let's say you're looking at an apartment building that earns \$50,000 per year in rent. If other similar properties have a GIM of 8, you'd multiply the \$50,000 by 8 to find out how much the apartment building is worth: \$400,000.

"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"

In the land of houses, a tool we employ,
To find a property's value, oh what a joy!
Gross Income Multipliers, or GIM, let's say,
Help us compare properties in a whimsical way.

When a home brings in cash, like rent, you see,
We multiply that by the GIM, as easy as can be.
It tells us the worth, of houses around,
A rhyme-filled approach, where value is found.