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Commercial Real Estate Exam Questions And Answers
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Commercial Real Estate Exam Questions And Answers...
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Commercial Real Estate Exam Questions And AnswersWhat do you refer to as the personal cash you put into a property? - Answer Equity
Should your NOI be greater or lesser than your interest rate? - Answer Greater
Is debt a bad thing? - Answer It depends
What does debt consist of? - Answer Principal and interest
Determine the loan principal based on the following:
Annual interest:8%
Interest expense: 14,000 - Answer 175,000 x .08= 14,000
Calculate the interest rate based on the
Interest expense 18,000
Loan principal 150,000 - Answer 150,000 x .12= 18000
Using the following information calculate the annual interest payment
Loan principal 150000
Annual interest 6% - Answer 150000 x .06= 9,000
What do you call the money from investors who will co-won the building with you? -
Answer Equity
What do you call the original sum of money borrowed from a lender? - Answer Principal
, What is the word that describes the money you borrow from a lender or bank that you
pay back over time plus interest? - Answer Debt
Assuming each building is in the same neighborhood, which one of these properties do
you think has a higher cap rate? - Answer Older building
Let's say there are two identical buildings. One in an unpopular city, and one in a
popular city. Which of these properties could have a higher cap rate? Answer
Unpopular city
Let's say we have two of the same buildings. One building is in a neighborhood with lots
of crime and the other is in a neighborhood with low crime. Which of these properties
might have a higher cap rate? - Answer High crime
If a building has a value of 600,000 and a cap rate of 4% what is the building's NOI? -
Answer 600,000 x .04= 24,000
The total possible rent is 15,000 and the building is 80% occupied. What is the net rent? -
Answer 15,000 x .8= 12,000
Calculate the properties total expenses using the following information
Property taxes 1,100
Maintenance 1,050
Utilities 2,100
Insurance 775
Management fees 2,500 - Answer Add them all together to get 7525
Calculate net operating income (NOI) based on the following information
Total revenue 216,000
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