real estate quizmaster

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Real Estate QUIZMASTER

100 100 100 100 100

200 200 200 200 200

300 300 300 300 300

400 400 400 400 400

500 500 500 500 500

Definitions Analytical Numerical MiscellaneousPotpourri


Definitions for 100

Residual Value is the estimate of the net proceeds from the _____ of the property


Definitions for 200

The pro-forma is an accounting style projection of the ______statement over time


Definitions for 300

______ is the rent that might be collected on a property if it were 100% occupied.


Definitions for 400

This is the sum of all mortgage payments required for the year including principal loan repayment as well as interest payment


Definitions for 500

The ____ is that yield which makes the project Net Present Value zero


Analytical for 100

This is the single most important estimate for the income approach to value


Analytical for 200

This figure remains constant (fixed) over time in a pro-forma statement


The higher the LTV (loan to value) ratio, the ____ the expectation of return to equity investor

Analytical for 300


“______” and “cap rate return” would be identical only if property is 100% Equity

Analytical for 400


Analytical for 500

This ratio gives an indication on initial (going-in) profitability of a property


Taxable income times the tax rate equals taxes owed if taxable income is ______

Potpourri for 100


Potpourri for 200

The DCR must exceed ___ in order for the property to be able to make the mortgage payments and have something left over


In a stable market rents might be expected to run at approximately the expected rate of _____

Potpourri for 300


Potpourri for 400

After Tax Return on Equity =

????????? Cash Equity


If the property is 100% equity (no debt) then the ______ is equal to the before tax cash flow

Potpourri for 500


Numerical for 100

The DCR will be 1.25x on an NOI of $10,000 if the _____ is $12,500


Numerical for 200

For a 15% ROA on a $100,000 property, the NOI needs to be _____


Numerical for 300

The Expense Ratio will be 0.25 if the Total Operating Expenses are $5,000 and the _____ is $20,000


Numerical for 400

If the Breakeven Point is 0.85, then the property could attain ____% vacancy and still break even


DAILY DOUBLE


Daily Double Numerical for 500

If the PGI is $20,000 Total Operating Expenses run $8,000 and the Debt Service runs $10,000, the Breakeven Point is ______


Miscellaneous for 100

The prudent property analyst will consider ‘reserves’ prior to estimation of _____



A F F O



C T O E



A T C F


Miscellaneous for 500Investors want as much debt as possible as long as the property can support the debt and the expected _____ on the property exceed the cost of the debt

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