Exam (elaborations)
REE 4103 EXAM Questions with 100% correct answers | verified | latest update 2024
- Course
- Institution
REE 4103 EXAM Questions with 100% correct answers | verified | latest update 2024
[Show more]
Seller
Follow
AnswersCOM
Reviews received
Content preview
REE 4103 EXAM QUESTIONSA _______________ would have the lowest ratio of operating expenses to gross
income incurred by the landlord. - ANS-triple-net (absolute net)
A formal appraisal report must include the - ANS-All of the above: (Date of the value
estimate; Signature of the appraiser; Identification of the property appraised;
Certification)
A lease clause that limits the expenses of the landlord is termed a: - ANS-Expense
Clause (Expense Stop)
A property with a variable income and unknown resale price. Its holding period is
estimated at 7 years. The reversion at the end of the holding period is estimated to
increase by a total of 11% over the entire holding period. The estimated discount rate
for the property is 9%. If the net present value of just the income over the holding period
is $300,000, what is the present value of the property when taking into consideration the
reversion? - ANS-
A property with NOI of $220,000 and annual debt service of $83,000. The Rm
(mortgage constant) equals .1090, and the M (loan to value ratio) is .65. What is the
overall cap rate indicated when using the debt coverage formula? - ANS-
A reconstructed operating statement for an owner operated property should include -
ANS-· Management expense (ex: Have to reconstruct it because there's no way a
manager should be paid, say $5,000 / yr at market)
A rent multiplier - ANS-
A rent survey reveals that apartment buildings offering one-bedroom units have a
considerably higher occupancy factor than those with two-bedroom units. If the subject
property includes only units with two bedrooms, the appraisal should probably project -
ANS-a higher vacancy factor (lower occupancy factor) than was found for one bedroom
A small office building sold for $[x]. The monthly net operating income is $[y]per
MONTH. What was the overall capitalization rate? - ANS-A small office building sold for
$120,000. The monthly net operating income is $1,300 per MONTH. What was the
overall capitalization rate? V = I / R
V = 120,000
, I = 1,300 * 12 = 15,600
V = I / R so...
120,000 R = 15,600
R = 13%
A tenant who has an Exclusive Use Clause with a landlord, where the landlord later
allows a competing tenant in the same shopping center may - ANS-Exercise the clause
in a lawsuit
A value range is never - ANS-wide or narrow
All of the following lease provisions are advantageous to the lessee except -
ANS-Escalation Clause
All of the following relate to the rent level or payment schedule of a lease except: -
ANS-Financing of the property
All the following are excluded from the reconstructed operating statement except -
ANS-Excluded: Mortgage loan interest payments, Book depreciation, Business tax,
Capital costs/improvements
Included: Management charges, Fixed -- taxes & insurance, Variable - management &
utilities & maintenance, Replacement Allowance - exterior paint & kitchen/bathroom
equipment & carpeting/roof, Advertising expenses
An "as of" date is specified in appraisals to - ANS-Indicate the market conditions on
which the value is estimated (or record the date of the last inspection)
An allowance for vacancy and collection loss is estimated as a percentage of: -
ANS-Potential Growth Income
An appraiser determines that a comparable property would have a holding period of 5
years, terminal cap rate (based on Yr 6 NOI) of 13%, and estimates 5% selling
expenses. The property's purchase price was $475,000. The appraiser projects the
following cash flows for NOI: Year 1: $47,000; Year 2: $48,000; Year 3: $55,000; Year 4:
$60,000; Year 5: $45,000; Year 6: $40,000. What is the IRR (internal rate of return) for
this comparable. - ANS-An appraiser determines that a comparable property would
have a holding period of 5 years, terminal cap rate (based on Yr 6 NOI) of 11%, and
estimates 4% selling expenses. The property's purchase price was $375,000. The
appraiser projects the following cash flows for NOI: Year 1: $37,000; Year 2: $38,000;
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller AnswersCOM. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $7.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
77254 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now