Exam (elaborations)
CCIM 101 MODULE 4-ANSWERED
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CCIM 101 MODULE 4-ANSWERED
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CCIM 101 MODULE 4-ANSWERED(GRM ) GROSS RENT MULTIPLER - ANS-PURCHASE PRICE DIVIDED BY PRI
(NOI) NET OPERATING INCOME - ANS-.POTENTIAL RENTAL INCOME
. VACANCY AND CREDIT LOST
. OTHER INCOME ( LAUNDRY, VENDING MACHINE ETC)
. OPERATING EXPENSE
ABSOLUTE GROSS LEASE - ANS-THE OWNER PAYS ALL OF THE OPERATING
EXPENSES
ABSOLUTE NET LEASE - ANS-TENANT PAYS ALL OPERATING EXPENSES
ACQUISITION CAP RATE - ANS-NOI DIVIDE BY PURCHASE PRICE
CALCULATING VACANCY AND CREDIT LOSSES - ANS-. DETERMINE
COMPETITIVE MARKET RENTS IN THE AREA
. REVIEW THE RENT HISTORY OF THE PROPERTY
. ASSESS THE AVAILABILITY OF ALTERNATIVE SPACE
. ESTABLISH VACANCY RATES FOR THE PARTICULAR MARKET
. REVIEW THE LENGTH OF EXISTING LEASES AND LEASE GUARANTEES.
. ASSESS TENANT QUALITY, ECONOMIC STRENGTH, AND CURRENT LEASE
SATISFACTION
CAP RATE AND RETURN ON INVESTMENT - ANS-A COMMON MISCONCEPTION
IS THE CAP RATE AND RETURN ON INVESTMENT ARE ONE IN THE SAME . THIS
IS RARELY THE CASE
DIRECT CAPITALIZATION DIFINITION - ANS-THE PROCESS OF CONVERTING A
FUTURE INCOME STREAM INTO A PRESENT VALUE (PV) BY DIVIDING A A
FUTURE INCOME AMOUNT BY A CAP RATE
DIRECT CAPITALIZATION FORMULAS - ANS-INCOME (NOI) (I) = R X V
RATE (CAP) (R) = I / V
VALUE (V) = I / R
DISPOSITION CAP RATE - ANS-SALE PRICE
DISPOSITION ALSO REFERRED TO AS TERMINAL CAP RATE
HYBRID LEASE - ANS-WHO PAYS WHICH OPERATING EXPENSES IS
NEGOTIATED BETWEEN THE TENANT AND OWNER
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