Financial Modeling Study Guide Wall Street Prep - Recently Updated Verified

Financial Modeling Study Guide Wall Street Prep - Recently Updated Verified Which of the following Real estate functions does not rely on financial Models - answer - Tenants Which of the following is not a formatting and layout best practice for financial modeling - answer - always password protecting your model In a model, what font color should hard-coded numbers (inputs) be - answer - Blue which formula is frequently used in real estate financial models when dealing with dates and timelines - answer - =EOMonth what is a good way to keep track of assumptions when building a financial model - answer - Microsoft Excel cell comments Which of the following is not one of the main sheets of a real estate financial Model - answer - Engine Which of the following is a type of commercial model - answer - Office Which of the following is a supporting tab for a multifamily model - answer - Historical financials Which of the following is a supporting tab for a commercial model - answer - Argus outputs What is Argus - answer - A software program used to project cash flows for commercial property types real estate models are heavily reliant on which of the following - answer - Dates and Timelines What is a good alternative to merging cells - answer - Center Across selection Which of the following should you avoid - answer - naming cells and ranges which of the following would you find on the inputs and drivers tab of a real estate model - answer - property overview Which of the following would you find on the transaction summary tab of a real estate model - answer - Investment returns what is the main driver of property values - answer - tenants and their ability to pay rent which of the following is not a way in which revenue is generated by real estate assets - answer - broker fees what is the largest operating expense for any property - answer - real estate taxes how is net operating income (NIO) calculated - answer - NIO = total income - total expenses Which lease structure results in the highest quoted rent - answer - Full Service (FS) which of the following is not a key term of commercial leases - answer - broker fee which of the following is not a characteristic of multifamily properties - answer - Long term cash flow which of the following are subtracted from Gross Potential Rent (GPR) to calculate Net Potential Rent (NPR) - answer - Loss to lease and Concesssions which of the following is not a characteristic of commercial property - answer - safety which of the following are subtracted from Potential Base Rent (PBR) to calculate Total Rental Income - answer - Rent Abatements and absorption & turnover vacancy Approximately how much turnover do multifamily properties see each year - answer - 50% What new operating expense line item is introduced for industrial properties - answer - Common Area Maintenance What does net operating income (NOI) measure - answer - profitability of a property's operations What is the relationship between cap rates and multiples - answer - inverse which of the following is a synonym for "cap rate" - answer - Yield Which of the following does not describe Tenant Improvements (TIs) - answer - The improvements a tenant leaves behind after vacating their space what is a fee paid to commercial real estate brokers for facilitating a lease transation - answer - Leasing Commission How is Total Lease Value Calculated - answer - square footage x rental rate x lease term which of the following would not be considered Deferred Mantenance - answer - Gym renovation Which of the following would not be considered an Offensive Renovation - answer - parking garage repairs what is a good rule of thumb for an acquisition hold period - answer - 5 years which of the following is not a common closing cost - answer - asset management fees what is a good rule of thumb for an acquisition fee as a percentage of the purchase price - answer - 1% what is the largest adjustment made in calculating