AND 100% CORRECT ANSWERS|LATEST
What are the steps for solving NOI.
What is an acronym for it? - ANSWER PGI
<V/C>
= EGI
<OPEX>
=NOI
Please, Vacuum, Every, Office, Now
Whats the purpose of Ground Rent Capitalization method? - ANSWER a method of
valuing vacant land based on the income it generates in a given year. Then divide by an
appropriate land cap rate.
*Annual Income (from rent) / Rate of Return = Land Value
What is the sequence of adjustments?
What is the acronym for it? - ANSWER P - Property Rights
F - Financing
C - Conditions of Sale
M - Market Conditions
L - Location
1
,P - Physical Characteristics
Private, First, Class, Makes, Low, Pay
What are the 4 factors of productivity?
What is the acronym? - ANSWER CELL or CCLL
-Capital
-Entrepreneurial Profit (Coordination)
- Land
- Labor
What are the four influences on Real Estate?
What is the acronym? - ANSWER PEGS
Physical/Environmental
Economic
Governmental
Social
What are the 4 Economic/Characteristics of Value?
What is the acronym? - ANSWER DUST
Desire / Demand / Effective Demand- Does anyone want it?
2
, Utility - Can it be used?
Scarcity - How much is there of it?
Transferability - Can it be sold.
What are the 4 TEST of Highest and Best Use? - ANSWER 1. Physically Possible
2. Legally Permissible
3. Financially Feasible
4. Maximally Productive
What is the first step for highest and best use? - ANSWER Legally Permissible.
What are the 4 stages of a neighborhood?
What is the acronymn? - ANSWER Grow, so, damn, good, Rachel.
Growth
Stability
Decline
Gentrification/Revitalization
What is an example of a Physical/Environmental influence affecting RE value?
Employee Wages
Proximity to amenities
Monetary Policies
Social Trends - ANSWER Proximity to amenities are considered environmental
3
What are the steps for solving NOI.
What is an acronym for it? - ANSWER PGI
<V/C>
= EGI
<OPEX>
=NOI
Please, Vacuum, Every, Office, Now
Whats the purpose of Ground Rent Capitalization method? - ANSWER a method of
valuing vacant land based on the income it generates in a given year. Then divide by an
appropriate land cap rate.
*Annual Income (from rent) / Rate of Return = Land Value
What is the sequence of adjustments?
What is the acronym for it? - ANSWER P - Property Rights
F - Financing
C - Conditions of Sale
M - Market Conditions
L - Location
1
,P - Physical Characteristics
Private, First, Class, Makes, Low, Pay
What are the 4 factors of productivity?
What is the acronym? - ANSWER CELL or CCLL
-Capital
-Entrepreneurial Profit (Coordination)
- Land
- Labor
What are the four influences on Real Estate?
What is the acronym? - ANSWER PEGS
Physical/Environmental
Economic
Governmental
Social
What are the 4 Economic/Characteristics of Value?
What is the acronym? - ANSWER DUST
Desire / Demand / Effective Demand- Does anyone want it?
2
, Utility - Can it be used?
Scarcity - How much is there of it?
Transferability - Can it be sold.
What are the 4 TEST of Highest and Best Use? - ANSWER 1. Physically Possible
2. Legally Permissible
3. Financially Feasible
4. Maximally Productive
What is the first step for highest and best use? - ANSWER Legally Permissible.
What are the 4 stages of a neighborhood?
What is the acronymn? - ANSWER Grow, so, damn, good, Rachel.
Growth
Stability
Decline
Gentrification/Revitalization
What is an example of a Physical/Environmental influence affecting RE value?
Employee Wages
Proximity to amenities
Monetary Policies
Social Trends - ANSWER Proximity to amenities are considered environmental
3
