Worksheets1/2 Unit 21: Investment & Commercial Properties
Total questions: 10
Worksheet time: 10mins
Which of the following is not a major consideration by real estate investors when evaluating a property?
Risk
Liquidity
Comps
Leverage
Vandalism would be considered which kind of risk?
Dynamic risk
Capital risk
Financial risk
Static risk
You’re an investor considering purchasing a property. The prospectus and pro forma statements helped you determine the NOI of $100,000. You require a return rate of 10%. What purchase price would you be willing to pay for the property?
10,000,000
1,000,000
100,000
10,000
You’re an investor considering purchasing a property. The seller is asking for $2,000,000 and you require a 10% return rate on your investments. Before performing your financial analysis, what NOI would you require the property to have to consider purchasing it?
2,000,000
200,000
20,000,000
20,000
Which of the following formulas is INCORRECT?
Income = Rate x Value
Rate = Income/Value
Value = Income x Rate
Value = Income/Rate
The formula for net operating income is...
= Potential gross income - Vacancy and Collections loss
= Effective gross income - Operating expenses
= Before-tax cash flow - Income tax
= Taxable Income x Marginal rate
Which of the following is a type of lease where the lessee pays the lessor a minimum base rent plus a portion of the merchant’s sales over a natural break even or natural break?
Net Lease
Gross Lease
Percentage Lease
Loft Lease
In which of the following leases does the tenant have to pay some or all of property taxes and operational costs. Choose the best answer.
Gross lease
Net lease
Percentage lease
Loft lease
Which of the following is the difference between the rentable area and the actual usable interior space measurement?
Rentable Area
Usable Area
Loss Factor
Add-on Factors
Which of the following is the most useful area measurement for tenants?
Rentable Area
Usable Area
Common Area
Carpetable Area
