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What is the GIM of a strip mall with annual income of $547,500 and a value of $6,345,000?

1 Answer

5 votes

Answer:

11.6

Explanation:

GIM means Gross Income Multiplier and it is a method used for valuating a property or an investment. It is expressed mathematically as the ratio of the property's value/sales price and its gross annual income.

GIM = Value of an investment/Gross annual income.

Given the annual income = $547,500 and Value = $6,345,000;

GIM = $6,345,000/$547,500

GIM = 11.589

GIM ≈ 11.6

Hence, the Gross Income Multiplier of the strip mall is approximately 11.6.

GIM has no units.

User Alberto Morillo
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