Post on 30-Dec-2015
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“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
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
Potpourri Analytical Numerical MiscellaneousAcronyms
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
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
Potpourri Analytical Numerical MiscellaneousAcronyms
“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
The traditional income approach (NOI/R) presumes that the property has infinite ______ life
Analytical for 300
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
The greater the risk, the ____ will be the cap-rate
Analytical for 400
“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
R R R
Acronyms for 100
“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
P G I
Acronyms for 300
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
Acronyms for 400
D C F
“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner
G R M
Acronyms for 500
“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/??????