Real Estate QUIZMASTER

transcript

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

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

Definitions Analytical Numerical Formulae Acronyms

Real Estate QUIZMASTER

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

Definitions Analytical Numerical Formulae Acronyms

Definitions for 100

This term refers to the ability of an investor to increase the returns on equity through the use of debt

Definitions for 200

The rent that can be collected on an annual basis assuming that a property is completely occupied

Definitions for 300

_______ real estate investment refers to owningthe investment via thepublic markets and securities which may be traded

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

Definitions for 500

The average increase in all prices weighted based on typical consumption

Analytical for 100

How aggressively an investor tries to accumulate wealth depends on his _____

Analytical for 200

The IRR is a number which causes the discounted sum of all future returns to be exactly equal to ___

Riskfree investments are estimated by _______ securities

Analytical for 300

More leverage ________ the variability of returns

Analytical for 400

Analytical for 500

When mortgage payments are made, principal repayment enhances the investor’s equity in

the property unless…

G I G O

Acronyms for 100

Acronyms for 200

I R RAcronyms for 300

Acronyms for 400

Acronyms for 500

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

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 _____

DAILY DOUBLE

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 _____

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 = __________

Numerical for 500

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 = __________

Formulae for 100

Gross Rent – Vacancy =

??????????

Formulae for 200

Stock Current Returns

= ??????????Stock Price

Formulae for 300

NOI - ??????????? =

Cash Flow (before tax)

Formulae for 400

Bond Current Returns

= ???????????Bond Price

Formulae for 500

????????? –

Operating Expenses

Real Estate QUIZMASTER

Documents