Real Estate QUIZMASTER

1. Real Estate QUIZMASTER Definitions Analytical Potpourri Numerical Miscellaneous 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 “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

2. Real Estate QUIZMASTER Definitions Analytical Potpourri Numerical Miscellaneous 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 “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

3. Definitions for 100 • Residual Value is the • estimate of the net • proceeds from the _____ • of the property “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

4. Definitions for 200 • The pro-forma is an • accounting style • projection of the ______ • statement over time “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

5. Definitions for 300 • ______ is the rent that • might be collected on a • property if it were 100% • occupied. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

6. Definitions for 400 • This is the sum of all mortgage payments required for the year including principal loan repayment as well as interest payment “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

7. Definitions for 500 • The ____ is that yield which makes the project Net Present Value zero “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

8. Analytical for 100 • This is the single most • important estimate for • the income approach to • value “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

9. Analytical for 200 • This figure remains constant (fixed) over time in a pro-forma statement “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

10. Analytical for 300 • The higher the LTV (loan to value) ratio, the ____ the expectation of return to equity investor “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

11. Analytical for 400 • “______” and “cap rate return” would be identical only if property is 100% Equity “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

12. Analytical for 500 This ratio gives an indication on initial (going-in) profitability of a property “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

13. Potpourri for 100 • Taxable income times the tax rate equals taxes owed if taxable income is ______ “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

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

15. Potpourri for 300 • In a stable market rents might be expected to run at approximately the expected rate of _____ “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

16. Potpourri for 400 • After Tax Return on Equity = • ????????? • Cash Equity “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

17. Potpourri for 500 • If the property is 100% equity (no debt) then the ______ is equal to the before tax cash flow “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

18. Numerical for 100 The DCR will be 1.25x on an NOI of $10,000 if the _____ is $12,500 “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

19. Numerical for 200 For a 15% ROA on a $100,000 property, the NOI needs to be _____ “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

20. Numerical for 300 • The Expense Ratio will be 0.25 if the Total Operating Expenses are $5,000 and the _____ is $20,000 “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

21. Numerical for 400 • If the Breakeven Point is 0.85, then the property could attain ____% vacancy and still break even “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

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

23. If the PGI is $20,000 Total Operating Expenses run $8,000 and the Debt Service runs $10,000, the Breakeven Point is ______ Daily Double Numerical for 500 “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

24. Miscellaneous for 100 • The prudent property analyst will consider ‘reserves’ prior to estimation of _____ “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

25. Miscellaneous for 200 A F F O “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

26. Miscellaneous for 300 • C T O E “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

27. Miscellaneous for 400 • A T C F “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

28. Miscellaneous for 500 • Investors 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 “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner