Real Estate QUIZMASTER

1. Real Estate QUIZMASTER Definitions Analytical Acronyms Numerical Formulae 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 Acronyms Numerical Formulae 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 • This term refers to the ability of an investor to increase the returns on equity through the use of debt “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

4. Definitions for 200 • The rent that can be collected on an annual basis assuming that a property is completely occupied “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

5. Definitions for 300 • _______ real estate • investment refers to owning • the investment via the • public markets and securities which may be traded “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

6. Definitions for 400 • This “basis” of a real property is what the owner has invested in it, which includes the portion bought with debt, less accumulated depreciation “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

7. Definitions for 500 • The average increase in all prices weighted based on typical consumption “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

8. Analytical for 100 • How aggressively an investor tries to accumulate wealth depends on his _____ “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

9. Analytical for 200 • The IRR is a number which causes the discounted sum of all future returns to be exactly equal to ___ “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

10. Analytical for 300 • Riskfree investments are estimated by _______ securities “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

11. Analytical for 400 • More leverage ________ the variability of returns “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

12. Analytical for 500 When mortgage payments are made, principal repayment enhances the investor’s equity in the property unless… “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

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

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

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

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

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

18. Numerical for 100 The IRR required by most real estate investors for the last several years has tended to run about ____ for conservative low risk investments “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

19. Numerical for 200 A bond purchased for $900 which pays an annual end of year coupon of $90 per year with a maturity value of $1,000 in exactly two years has a Current Yield of _____ “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

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

21. Daily Double Numerical for 300 • A bond purchased for $900 which pays an annual end of year coupon of $80 per year with a maturity value of $1,000 in exactly two years has a YM of _____ “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

22. Numerical for 400 • If we bought a property for $200,000 with $50,000 down as equity and the first and second year before tax cash flows are $6,000 and $8,000 respectively, then the Year Two ROE = __________ “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

23. If we bought a property for $200,000 with $50,000 down as equity and the first and second year before tax cash flows are $6,000 and $8,000 respectively, then the Year One ROA = __________ Numerical for 500 “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

24. Formulae for 100 • Gross Rent – Vacancy = • ?????????? “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

25. Formulae for 200 Stock Current Returns = ?????????? Stock Price “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

26. Formulae for 300 • NOI - ??????????? = • Cash Flow (before tax) “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

27. Formulae for 400 • Bond Current Returns • = ??????????? • Bond Price “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

28. Formulae for 500 • ????????? – • Operating Expenses • = NOI “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner