Exam Questions and CORRECT Answers
INVESTMENT VALUE - CORRECT ANSWER - THE PRICE AN INVESTOR IS
WILLING TO PAY FOR A SPECIFIC PROPERTY
(NOI) NET OPERATING INCOME - CORRECT ANSWER - .POTENTIAL RENTAL
INCOME
. VACANCY AND CREDIT LOST
. OTHER INCOME ( LAUNDRY, VENDING MACHINE ETC)
. OPERATING EXPENSE
NOI IS CALCULATE - CORRECT ANSWER - POTENTIAL RENTAL INCOME
- VACANCY AND CREDIT LOST
= EFFECTIVE RENTAL INCOME
+ OTHER INCOME (COLLECTIBLE)
= GROSS RENTAL INCOME
- OPERATING EXPENSE
= NET OPERATING INCOME
ABSOLUTE GROSS LEASE - CORRECT ANSWER - THE OWNER PAYS ALL OF
THE OPERATING EXPENSES
HYBRID LEASE - CORRECT ANSWER - WHO PAYS WHICH OPERATING
EXPENSES IS NEGOTIATED BETWEEN THE TENANT AND OWNER
ABSOLUTE NET LEASE - CORRECT ANSWER - TENANT PAYS ALL OPERATING
EXPENSES