CAM EXAM Practice QUESTIONS WITH COMPLETE SOLUTION 2023/2024 Graded A+

CAM EXAM Practice QUESTIONS WITH COMPLETE SOLUTION 2023/2024 Graded A+. Certificates of insurance - answerProof of insurance for liability and Workers Comp for contractors 4 contract components that minimize risk - answerLien waivers Multiple Payee Payments Payment & Performance Bonds Certificates of Insurance Life Cycle of Multifamily Real Estate - answerGrowth- Stability- Decline- Revitalization Workforce Housing - answerincomes that aren't sufficient to obtain qulity housing that is close to their work Senior Housing/Full Service or continuing care - answerSeniors can stay in the same general area as their housing needs change over time. Assisted Living - answerStaffed 24 hours a day Senior Housing - answerCan be conventional market or affordable Co-Op - answerOwn a share, Board of Directors, Restrictions on transfer of shares, limits on income and maximum sales price Garden style - answerNo more than 3 stories Townhouse - answerMulti-story building/ side by side Low-Rise - answerEnclosed building. No more than 4 stories. No more than 115 feet tall Mid-Rise - answerEnclosed building 5-10 stories High Rise - answerEnclosed building- more than 10 floors Class A - answerless than 5 years old. Lowest CAP rates and highest unit prices. Class B - answer5-15 years old. Class C - answer15-30 years old Class D - answer30+ years old What percent of Americans live in apartments? - answerover 1/3 When renters decide where to rent, what three primary factors of location do they consider? - answerProximity to work, schools, stores Walkability Proximity to public transportation When renters decide to rent, what 2 primary factors of life circumstance do they consider? - answerFlexibility & ability to move easily Reluctance to maintain a house As a CAM what do you knowledge, skills, and decisions directly contribute to? - answerThe financial success and value of a property What term describes an investment to increasing in value? - answerGrowth What other factors impact investments? - answerRisk: The possibility of losing some of an initial investment Income: The expected financial return from an investment Liquidity: the ease with which an asset can be converted to cash When playing a role of an investor advocate, who is included? - answerOwners Investors Lenders When playing the role of a resident advocate, who is included? - answerResidents Prospects Neighbors Employees What is the key to advocating for all groups? - answerMaintain ethics and balance What types of affordable housing are available? - answerSection 8 LIHTC- Low Income Housing Tax Credit Workforce Housing What types of senior housing are available to people over 55? - answerIndependent Living Assisted Living Full Service or continuing Senior care In what of housing do residents own a "Share" of the property and occupy a unit as if they were owners - answerCo-Op Cash Flow Formula - answerGPR -VAC =TRR +OI =EGI -OE =NOI -DS -CE -RR =CF GPR - answerRent that would be collected if a property was 100% occupied and all residents were paying market rent GPI - answerIncome of Occupied units at existing rates and vacant units at market rent. Operating Expense Ratio Formula - answerOE/EGI= OE Ratio Operating Expense Ratio - answerused to measure property performance and expense control Break even occupancy ratio formula - answer(OE+DS+RR)/EGI Break Even Occupancy - answerOccupancy level needed to earn enough to pay the expenses and debt service. Break Even Rent per SF - answer(OE+DS+RR)/Total SF EGI - answerGPR-VAC=TRR+OI=EGI Types of Financial Loss - answerVacancy Loss Offline Units Concessions Bad Debt Expense Types - answer1. Fixed Expenses 2. Capital Expenses 3. Variable Expenses 4. Debt Service- Includes replacement reserves Capital Expense - answerHas a useful economic life Accrual Accounting - answerincome when earned/expenses when due- regardless if paid or not Cash Accounting - answeras received or paid CAP Rate - answerThe lower the CAP rate the higher the value Forecasting - answerProjections- you can use annualization or extrapolation to assist Annualization - answerusing known data to estimate a full year Extrapolation - answerUsing known data to make a prediction about what might happen. Jan- $300 Feb- $275 March- $250 Return on Investment - answerthe benefit to the investor resulting from an investment- Always calculated on an annual basis. Cash-on-Cash return - answerMeasures the amount of cash earned against the original cash invested. Cash in vs cash out