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Which of the following best represents a 1:4 equity to debt ratio?
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The ratio between the sale price of a property and its potential gross income is known as _________.
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Which of the following is reflective of the principle of supply and demand?
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Land and building to the whole is an example of ____________.
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The conversion of income into value is called ____________.
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True or False: Direct Capitalization converts one year of income into value,while Yield Capitalization converts multiple years into value.
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Generally, what two methods of capitalization are accepted in the appraisal field?
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List the principle that refers to the amount that the lack of a component of value would take away from the value of the whole?
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The amount for which the property will most likely sell if placed on the market on the date of value is called _______________.
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In the problem, how much will $1 be in 10 years in an account earning 6% interest, what is the symbol for the $1?
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Which of the below is the best description of the sinking fund accumulation factor?
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_______________ describes the reversion factor?
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_________________is a method of deriving capitalization rates from property sales when sale price and net operating income are known.
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The Six Functions of one dollar are factors based on what principle?
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Interest that is paid only on original property, not on any interest accrued is called ____________.
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Which of the following best describes Periodic interest rate?
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Multiple amounts of money are called?
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Discounting is a procedure used to convert periodic incomes, cash flows, and reversions into ___________________.
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The lump sum benefit that an investor receives at the termination of an investment is called what?
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The Inwood Factor is also called ____________.
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What does the following symbol mean? Rm
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Which of the following is the symbol for the annual constant?
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___________ is the symbol for the loan amount?
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_________________ is the interest rate on which a mortgage is based.
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What is the sinking fund factor at a 5% yield rate and a 15 year holding period?
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What is the sinking fund factor at a 23% yield rate and a 19 year holding period?
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A car wash has a net operating income of $281,000 and the appropriate capitalization rate is 9.5%. What type of capitalization should be used to solve this problem?
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A property's first year income was $50,000 and is forecast to stay the same over a 10 year holding period (keeping the same value). If the property sells for $500,000, what will the yield rate be?
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You are appraising a multi unit retail property with rent concessions and below-market rents. Vacancy is 100% while market occupancy is 80%. Which capitalization technique would be best utilized in this scenario?
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True or False: Yield Capitalization better accommodates atypical rent and expense patterns than Direct Capitalization ?
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True or False: Direct Capitalization is more difficult to explain than Yield Capitalization.
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Working backwards, if you add the expenses to the NOI, which of the following do you have?
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In the income approach, appraisers must consider these attributes of the income stream: Quality, Quantity and ________________.
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Which of the below is percentage rent paid over and above the guaranteed minimum rent?
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What interest normally sells with a fully leased retail strip center?
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If a lease began at $13 per square foot and the lease specifies rent is to increase annually at 4.5%per year for each year on the lease, what will the rent be in the 5th year of the lease?
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Rent began at $15 per square foot in 1990 and increases according to the annual increase in the consumer price index. If the consumer price index was 188 in 1990, 190 in 1991, 191 in 1992, and 198 in 1993.
What was the rent in 1993?
What was the rent in 1993?
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A lease that grants the use to the underlying land is called a _________.
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A lease that provides for specified changes in rent at multiple points during the lease term is called a _____________ lease.
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What are the two primary adjustment techniques used to estimate market rent?
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What sort of lease dictates that the landlord pay all the expenses?
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_____________ a clause in a lease that limits a tenant's share of operating expenses.
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_________ the clause in a lease that limits the landlord's expense obligation. Normally states that the lessee assumes any expenses above an established level.
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_______________ vacancy occurs in a city dominated by a single industry and that industry leaves?
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True or False: Potential Gross Income is the anticipated income from all operations of the property at what time an allowance is made for vacancy and collection losses, and an addition is made for any other income.
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This type of vacancy has nothing to do with supply and demand,, but rather due to tenant relocation as leases roll over and expire.
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An apartment building with 50 units, each 500 sf and monthly rent of $900, and 8 of the units are vacant, what is the occupancy as a percentage of square footage?
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If a property has a market value of $400,000, an assessed value of $300,000 and property taxes of $3,532.71, the effective tax rate would be equal to __________?
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Which of the below are the categories of operating expenses?
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True or False: Above the line expenses are also known as Operating Expenses.
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True or False: Debt service is an operating expense.
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How much must a vacant land parcel sell for in 15 years for the investor to yield 9% if
it cost $1,200,000 and the holding costs were $100,000 per year?
it cost $1,200,000 and the holding costs were $100,000 per year?
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What is the effective annual rate for 12% nominal rate payable six times
per year?
per year?
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What are two components of annual debt service IM?
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What is deducted from net operating income to result in pretax cash flow?
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True or False: Terminal cap rates are usually higher than the going-in cap rate?
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True or False: The terminal capitalization rate is usually lower than the going-in rate because of Age, Improvements, and Projections.
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The capitalization rate development technique is sometimes called _________.
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Which of the following would be considered a 'fixed cost'?
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Which principle forms the basis of the income approach?
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If a property you are appraising has a potential gross income of $300,000. If the vacancy and collection allowance is 6% and the operating expenses are $125,000, what is the Operating Expense Ratio?
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An apartment complex has a gross rent multiplier of 11 and its annual gross income is
$72,000. What is the value of the property?
$72,000. What is the value of the property?
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The ratio of total operating expenses to effective gross income is:
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What is the NOI?
A building is valued at $700,000. Expenses are 33% of EGI. Vacancy is 10%, and the property had a PGIM of 8.
A building is valued at $700,000. Expenses are 33% of EGI. Vacancy is 10%, and the property had a PGIM of 8.
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In the Income Approach, why is is sometimes necessary to reconstruct an operating statement (Profit and Loss Statement)?
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True or False: Investment value is the value of a property to a particular investor.
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A building owner puts $1000 in an account at the end of every month for replacement reserves, how much will be available after one year if the savings account pays 7% per year with interest compounding monthly?
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Mortgage interest rate is 9%. The $310,000 loan is for 30 years, monthly compounding. Net operating income is $30,500. What is the value of the property if Cash on cash rate is 7%?
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Loan amount is $700,000. Cash on cash rate is 8%. Mortgage constant is 9.5%. Loan term is 25 years, monthly compounding. If the net operating income is $90,600, what is the value of the property?
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Land value is $350,000. The building capitalization rate is 8.5%. Net operating income is $130,000. If the property sells for $1,500,000, what land capitalization rate can be extracted from it?
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Loan to value ratio is 65%. The mortgage interest rate is 8.5%. Loan is for 25 years, monthly compounding. Net operating income is $105,000. If the sale price is $1,200,000, what equity capitalization rate can be extracted from the transaction?
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The building capitalization rate is 8%. Net operating income is $250,000. Land value is $400,000. If the property sells for $1,800,000, what land capitalization rate can be extracted from it?
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Subject net operating income is $160,000. The down payment is $425,000 and the equity capitalization rate is 7%. If the mortgage term are 6.5% for 25 years, monthly compounding, what is the loan amount?
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Net operating income is $50,000. Mortgage interest rate is 6%, 25 years, monthly, compounding. Loan amount is $550,000. If the cash rate is 5.5%, what is the value of the property?
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Loan amount is $450,000. Mortgage interest rate is 5.25% for 25 years, monthly compounding. Net operating income is $40,000. What is the value if the equity capitalization rate is 4.5%?
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A property has a net income of $300,000. The building cap rate is 7% and the land cap rate is 8%. The value of the land is $1,000,000. What is the value of the building?
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The loan is 75% and the mortgage interest rate is 7.25%, 25 years, monthly compounding. What is the equity yield rate?
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A new property sold for $4,000,000. The building cost $2,500,000 and the building capitalization rate was 8%. The net operating income is $450,000. What is the indicated land capitalization?
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A property has a net income of $380,000. The building cap rate is 8.5% and the land cap rate is 7.5%. The value of the land is $1,100,000. What is the value of the building?
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A property can secure 75% loan financing at a debt coverage ratio of 1.20. If the cap rate is 8%, what is the indicated mortgage constant?
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A property can secure financing at a 1.30 debt coverage ratio. If the desired loan is $650,000 and the loan terms are 7%, 25 years, monthly compounding, how much net income must the property be able to generate?
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