Exam (elaborations)
Commercial Real Estate Exam Questions And Answers
- Course
- Institution
Commercial Real Estate Exam Questions And Answers...
[Show more]
Content preview
Commercial Real Estate Exam Questions And AnswersWhat do you refer to as the personal cash you put into a property? - Answer Equity
Should your NOI be greater or lesser than your interest rate? - Answer Greater
Is debt a bad thing? - Answer It depends
What does debt consist of? - Answer Principal and interest
Determine the loan principal based on the following:
Annual interest:8%
Interest expense: 14,000 - Answer 175,000 x .08= 14,000
Calculate the interest rate based on the
Interest expense 18,000
Loan principal 150,000 - Answer 150,000 x .12= 18000
Using the following information calculate the annual interest payment
Loan principal 150000
Annual interest 6% - Answer 150000 x .06= 9,000
What do you call the money from investors who will co-won the building with you? -
Answer Equity
What do you call the original sum of money borrowed from a lender? - Answer Principal
, What is the word that describes the money you borrow from a lender or bank that you
pay back over time plus interest? - Answer Debt
Assuming each building is in the same neighborhood, which one of these properties do
you think has a higher cap rate? - Answer Older building
Let's say there are two identical buildings. One in an unpopular city, and one in a
popular city. Which of these properties could have a higher cap rate? Answer
Unpopular city
Let's say we have two of the same buildings. One building is in a neighborhood with lots
of crime and the other is in a neighborhood with low crime. Which of these properties
might have a higher cap rate? - Answer High crime
If a building has a value of 600,000 and a cap rate of 4% what is the building's NOI? -
Answer 600,000 x .04= 24,000
The total possible rent is 15,000 and the building is 80% occupied. What is the net rent? -
Answer 15,000 x .8= 12,000
Calculate the properties total expenses using the following information
Property taxes 1,100
Maintenance 1,050
Utilities 2,100
Insurance 775
Management fees 2,500 - Answer Add them all together to get 7525
Calculate net operating income (NOI) based on the following information
Total revenue 216,000
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Easton. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $8.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77858 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now