Real Estate QUIZMASTER
Potpourri
Analytical
Acronyms
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
Potpourri
Analytical
Acronyms
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
Potpourri for 100
This valuation approach
is derived from the
wealth maximization
principle
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Potpourri for 200
Shorter economic life
results in a _______ cap
rate
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Potpourri for 300
Cap rates will be _____
when the property
expects fast income
growth
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Potpourri for 400
While using ____ in
valuation, it is essential
that they should have
similar risks and be in a
similar geographical
submarket
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Potpourri for 500
The easiest way to value
a property with very little
information about its
_____ or operating
expenses is to use GRM
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Analytical for 100
NOI / R is the
traditional _____
approach to value
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Analytical for 200
When relevant sales
information is not
available the _____
can found by “weighed
average cost of capital”
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Analytical for 300
The traditional income
approach (NOI/R)
presumes that the property
has infinite ______ life
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Analytical for 400
The greater the risk, the
____ will be the cap-rate
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Analytical for 500
Investment values are
unique to the investor
and can be higher or
lower than the ____ value
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Acronyms for 100
R R R
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Acronyms for 200
I R R
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Acronyms for 300
PG I
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Acronyms for 400
DCF
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Acronyms for 500
GRM
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Numerical for 100
The Cap Rate used to
determine a value of
$3,000,000 based on an
NOI of $300,000 is ____
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Numerical for 200
If an office building worth $10
million is being sold by the
owner for $9 million, then the
seller’s NPV is _____ and the
buyer’s NPV is _____
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Numerical for 300
If the monthly mortgage
constant is 0.008, LTV ratio
is 0.8 and the investor
requires a yield of 20% on
his equity, the Cap Rate is
_____
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Numerical for 400
At 7.5% interest per
annum and 25 year
amortization the monthly
mortgage constant will
be _______
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Numerical for 500
If the LTV is 75%, the before
tax cash return is 15% and
the monthly mortgage
constant is 0.09, then the
weighted Cap Rate is ____
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Miscellaneous for 100
Total Property Value =
Mortgage Value +
_____ Value
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Miscellaneous for 200
Even if the mechanics of the
DCF process are carried out
correctly, the problem with the
analysis may still have fallen
into the ____________ mistake
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Miscellaneous for 300
An investor should
become suspicious about
the value analysis if A
property with substantially
_____ NPV has remained
unsold for long time
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Miscellaneous for 400
This valuation approach
has similarities to the
“benefit-cost” analysis
used in public sector
“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
Miscellaneous for 500
Supportable Mortgage =
NOI/DCR/12/??????
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner