Iaao 102 - Study guides, Class notes & Summaries

List five sources of rental income data: - Answer- 1. Commercial property managers 2. Tenants of comparable properties 3. Real estate brokers and sales people 4. Sellers and purchasers of comparable properties 5. Public records Another name for market rent is___________rent. - Answer- economic In addition to sales and leases, _________ and ___________ can be a valid source of market information, if care is exercised. - Answer- offers listings 4. A lease that provides for one or mo...

IAAO 102 Formulas with 100% correct answers.

Value is created by the expectation of benefits to be derived in the future. - Answer- Anticipation This is the underlying principle which provides the basis of the income capitalization approach. - Answer- Anticipation The most probable price a property should bring in a competitive and open market under all conditions requisite to a fair sale. - Answer- Market Value All investors want a return OF their money - Answer- Recapture rate or getting back amount invested All investors wan...

IAAO 102 EXAM 2024 NEWEST 2 VERSIONS FROM ACTUAL EXAM 200 QUESTIONS AND CORRECT DETAILED ANSWERS (100% CORRECT) |ALREADY GRADED A+

Income & Expense Statement Gross Income/PGI - Vacancy & collection losses + Misc income ______________________ EGI - Allowed expenses ______________________ NOI Recapture Rate 1/REL (remaining economic life) Building & Land Rate Discount + ETR + Recapture = Building (Imp) rate Discount + ETR = Land rate Overall Rate (OAR or Ro) 1. NOI + sale price 2. Mortg % x mortg rate + equity % x equity rate 3. DCR x M x Rm 4. NIR/EGIM 5. land % x land rate + imp % x im...

IAAO 102 EXAM NEWEST VERSION WITH COMPLETE SOLUTIONS

Capitalization Rate correct answers A rate used for converting property income into property value Discount Rate correct answers The rate of return on a real estate investment. It reflects the compensation necessary to attract investors to give up liquidity. Recapture rate correct answers Provides for the return of the investment in the wasting portion of the asset. this is similar to the depreciation rate for the improvment. Overall /rate correct answers The direct relationship between...

Value is created by the expectation of benefits to be derived in the future. correct answers Anticipation The prices, rents, and rates of return of property tend to be set by the current prices, rents, and rates of return for equally desirable substitute properties. correct answers Substitution The most profitable price which a property should bring in a competitive and open market under all conditions requisite to a fair sale, the buyer and seller each acting prudently and knowledgeably, ...

Anticipation - Answer- Value is created by the expectation of benefits to be derived in the future Substitution - Answer- the prices, rents, and rates of return of property tend to be set by the current prices, rents and rates of return for equally desire able substitute properties. Contribution - Answer- the value of a component of real estate can be measured by the amount it contributes to net operating income because net operating income can be capitalized into value. Market Value - ...

IAAO 102 Exam Questions With Correct Answers Components of Capitalization Process - answerValue, Net Operating Income, and Capitalization Rate The underlying economic principle of 3 approaches to value - answersubstitution Market Value is also known as - answervalue in exchange Most probable price the property will sell for in an arm's-length transaction under normal conditions on the open market - answermarket value Higher Cap Rate - answerMeans Higher Risk and Lower Overall Value Low...