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FIN 331 Real Estate

FIN 331 Real Estate. Phase 2 Exam Chapters 7 - 10 Fall 2103. Chapter 7 Valuation: Sales Comps vs. Cost. Concepts / Terms / Applications What is the purpose of an Appraisal? How do comparable properties fit into the appraisal process? How does uniqueness affect appraisals?

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FIN 331 Real Estate

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  1. FIN 331 Real Estate

    Phase 2 Exam Chapters 7 - 10 Fall 2103
  2. Chapter 7Valuation: Sales Comps vs. Cost Concepts / Terms / Applications What is the purpose of an Appraisal? How do comparable properties fit into the appraisal process? How does uniqueness affect appraisals? What is meant by the following terms: Market value Replacement Cost Reproduction Cost How does market value differ from investment value? How do supply and demand affect values?
  3. Chapter 8Valuation: Income Approach Income, Capitalization, Investment Value What does it mean when we capitalize income? How does the capitalization rate affect investment value? How does direct capitalization differ from the Discounted Cash Flow method to value investment property? Define or explain the following terms: Potential Gross Income (PGI) Effective Gross Income (EGI) Net Operating Income (NOI) How does the vacancy rate affect EGI? How does capital Expenditure affect NOI?
  4. Chapter 9R.E. Law and Contracts General Considerations Why do real estate transactions involve debt? Why is debt financing attractive to investors? What does loan amortization mean? How does the principal portion of the monthly payment change over time vis-à-vis the interest portion? What does it mean when your mortgage has a balloon payment? What is a conforming loan? A jumbo loan? What does it mean to escrow taxes and insurance? What does it mean when a property is foreclosed? What is a short sale?
  5. Chapter 10Mortgage Types, Borrower Decisions Mortgage Markets How does a primary market for mortgages differ from the secondary market? What is a conventional mortgage? Why are FHA/VA mortgages of interest to investors? When is a home buyer most like to have to buy mortgage insurance? What makes an Adjustable Rate Mortgage (ARM) risky for the borrower? Attractive to the lender? What are Home Equity Loans? When would it be a good idea to refinance a loan? Who is most likely to use a reverse mortgage?
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