URES Workshop 6 Recap

What are the three approaches to real estate valuation?

• Cash Value, Tax Valuation, Construction Cost

• Replacement Cost, Sales Comparison, Income Capitalization

• Direct Cap, Rent Comparison, Cash Value

• Market Survey, Sales Comparison, DCF

A property has a 75% occupancy rate, and it is in its lease-up period.

• Stabilized Asset

• Unstabilized Asset

What's the loan amount with a 60% LTV for a property valued at $15,000,000?

• $8,000,000

• $90,000,000

• $9,000,000

• $2,500,000

Which one of the following loan type is considered long-term?

• Bridge Loan

• Land Development Loan

• CMBS Mortgage

• Mini Perm Loan

In a DCF model, what is the Terminal Cap Rate used for?

• To estimate the initial investment of the property

• To calculate the property’s annual rental income

• To estimate the property value at the end of the holding period

• To determine the operating expenses of the property

What does WALT (Weighted Average Lease Terms) measure?

• The average lease term on all leases

• The average market rent per unit given all leases

• The rate of return an investor required

• The average time left over on all leases

What is the minimum healthy DSCR for lenders?

• 0.50X

• 2.00x

• 1.25x

• 1.00x