Real Estate QUIZMASTER

1. Real Estate QUIZMASTER Potpourri Analytical Acronyms 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 Potpourri Analytical Acronyms 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. Potpourri for 100 • This valuation approach is derived from the wealth maximization principle “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

4. Potpourri for 200 • Shorter economic life results in a _______ cap rate “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

5. Potpourri for 300 • Cap rates will be _____ when the property expects fast income growth “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

6. Potpourri for 400 • While using ____ in valuation, it is essential that they should have similar risks and be in a similar geographical submarket “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

7. Potpourri for 500 • The easiest way to value a property with very little information about its _____ or operating expenses is to use GRM “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

8. Analytical for 100 • NOI / R is the traditional _____ approach to value “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

9. Analytical for 200 • When relevant sales information is not available the _____ can found by “weighed average cost of capital” “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

10. Analytical for 300 • The traditional income approach (NOI/R) presumes that the property has infinite ______ life “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

11. Analytical for 400 • The greater the risk, the ____ will be the cap-rate “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

12. Analytical for 500 Investment values are unique to the investor and can be higher or lower than the ____ value “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

13. Acronyms for 100 • R R R “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

14. Acronyms for 200 • I R R “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

15. Acronyms for 300 • P G I “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

16. Acronyms for 400 • D C F “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

17. Acronyms for 500 • G R M “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

18. Numerical for 100 The Cap Rate used to determine a value of $3,000,000 based on an NOI of $300,000 is ____ “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

19. Numerical for 200 If an office building worth $10 million is being sold by the owner for $9 million, then the seller’s NPV is _____ and the buyer’s NPV is _____ “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

20. Numerical for 300 • If the monthly mortgage constant is 0.008, LTV ratio is 0.8 and the investor requires a yield of 20% on his equity, the Cap Rate is _____ “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

21. Numerical for 400 • At 7.5% interest per annum and 25 year amortization the monthly mortgage constant will be _______ “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

22. Numerical for 500 If the LTV is 75%, the before tax cash return is 15% and the monthly mortgage constant is 0.09, then the weighted Cap Rate is ____ “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

23. Miscellaneous for 100 • Total Property Value = Mortgage Value + • _____ Value “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

24. Miscellaneous for 200 Even if the mechanics of the DCF process are carried out correctly, the problem with the analysis may still have fallen into the ____________ mistake “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

25. Miscellaneous for 300 • An investor should become suspicious about the value analysis if A property with substantially _____ NPV has remained unsold for long time “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

26. Miscellaneous for 400 • This valuation approach has similarities to the “benefit-cost” analysis used in public sector “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

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

28. Daily Double Miscellaneous for 500 • Supportable Mortgage = NOI/DCR/12/?????? “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner