IAAO Course 102- Review
1. Land-to-improvement ratio
2. Operating price ratio (OER)
three. Remaining monetary life (REL) - ANS-When developing the general capitalization rate
from the market comparisons, 3 critical gadgets which must be highly comparable among similar
sales and the difficulty belongings are:
5 Methods of Developing an Overall Capitalization Rate (Ro) - ANS-1. Derivation from
comparable income- (sales) maximum reflective of marketplace. Most ideal.
2. Band of investment method mortgage & equity additives - Banks.
Three. Net earnings ratio approach (sales)
4. Debt insurance ratio method (Banks)
five. Band of funding method land & development additives (income)
Anticipation - ANS-Value is created by using the expectation of benefits to be derived in the
future.
BOI Land & Building Components - ANS-Rl (land), Rb, Ro Matrix 4x4
Component - Portion (%) - Rate - Product (overall equals Ro)
Chattel loan - ANS-A mortgage most effective on persona assets
d. All of the above - ANS-Which of the following might be taken into consideration a proper
expense within the reconstructed working expense statement?
A. Salaries
b. Management
c. Utilities
d. All of the above
Deficit rent - ANS-Leasehold rent or leasehold earnings- Occurs while marketplace lease is
more than agreement hire.
EAT - ANS-ETR=AxT
Effective rent - ANS-Lease base hire less hire concessions.
Effective tax price (ETR) - ANS-Reflects the relationship between the real estate taxes and the
cost of the assets.
1. Land-to-improvement ratio
2. Operating price ratio (OER)
three. Remaining monetary life (REL) - ANS-When developing the general capitalization rate
from the market comparisons, 3 critical gadgets which must be highly comparable among similar
sales and the difficulty belongings are:
5 Methods of Developing an Overall Capitalization Rate (Ro) - ANS-1. Derivation from
comparable income- (sales) maximum reflective of marketplace. Most ideal.
2. Band of investment method mortgage & equity additives - Banks.
Three. Net earnings ratio approach (sales)
4. Debt insurance ratio method (Banks)
five. Band of funding method land & development additives (income)
Anticipation - ANS-Value is created by using the expectation of benefits to be derived in the
future.
BOI Land & Building Components - ANS-Rl (land), Rb, Ro Matrix 4x4
Component - Portion (%) - Rate - Product (overall equals Ro)
Chattel loan - ANS-A mortgage most effective on persona assets
d. All of the above - ANS-Which of the following might be taken into consideration a proper
expense within the reconstructed working expense statement?
A. Salaries
b. Management
c. Utilities
d. All of the above
Deficit rent - ANS-Leasehold rent or leasehold earnings- Occurs while marketplace lease is
more than agreement hire.
EAT - ANS-ETR=AxT
Effective rent - ANS-Lease base hire less hire concessions.
Effective tax price (ETR) - ANS-Reflects the relationship between the real estate taxes and the
cost of the assets.
