Real Estate QUIZMASTER
Definitions
Analytical
Potpourri
Numerical
Miscellaneous
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
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Real Estate QUIZMASTER
Definitions
Analytical
Potpourri
Numerical
Miscellaneous
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
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Definitions for 100
Residual Value is the
estimate of the net
proceeds from the _____
of the property
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Definitions for 200
The pro-forma is an
accounting style
projection of the ______
statement over time
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Definitions for 300
______ is the rent that
might be collected on a
property if it were 100%
occupied.
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Definitions for 400
This is the sum of all
mortgage payments
required for the year
including principal loan
repayment as well as
interest payment
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Definitions for 500
The ____ is that yield which
makes the project Net
Present Value zero
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Analytical for 100
This is the single most
important estimate for
the income approach to
value
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Analytical for 200
This figure remains
constant (fixed) over
time in a pro-forma
statement
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Analytical for 300
The higher the LTV (loan
to value) ratio, the ____
the expectation of return
to equity investor
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Analytical for 400
“______” and “cap rate
return” would be identical
only if property is 100%
Equity
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Analytical for 500
This ratio gives an
indication on initial
(going-in) profitability of
a property
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Potpourri for 100
Taxable income times the
tax rate equals taxes
owed if taxable income is
______
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Potpourri for 200
The DCR must exceed ___
in order for the property to
be able to make the
mortgage payments and
have something left over
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Potpourri for 300
In a stable market rents
might be expected to run
at approximately the
expected rate of _____
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Potpourri for 400
After Tax Return on Equity
=
?????????
Cash Equity
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Potpourri for 500
If the property is 100%
equity (no debt) then the
______ is equal to the
before tax cash flow
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Numerical for 100
The DCR will be 1.25x on
an NOI of $10,000 if the
_____ is $12,500
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Numerical for 200
For a 15% ROA on a
$100,000 property, the
NOI needs to be _____
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Numerical for 300
The Expense Ratio will be
0.25 if the Total Operating
Expenses are $5,000 and
the _____ is $20,000
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Numerical for 400
If the Breakeven Point is
0.85, then the property
could attain ____%
vacancy and still break
even
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
DAILY
DOUBLE
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Daily Double
Numerical for 500
If the PGI is $20,000 Total
Operating Expenses run
$8,000 and the Debt
Service runs $10,000, the
Breakeven Point is ______
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Miscellaneous for 100
The prudent property
analyst will consider
‘reserves’ prior to
estimation of _____
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Miscellaneous for 200
A F F O
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Miscellaneous for 300
C T O E
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Miscellaneous for 400
A T C F
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Miscellaneous for 500
Investors want as much debt
as possible as long as the
property can support the debt
and the expected _____ on
the property exceed the cost
of the debt
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner