Commercial Real Estate-30HR SAE
questions with answers.
Properties for investment buyers ANS -Office, retail, industrial, apartments, muti-family
Market Value ANS -the amount for which something can be sold on a given market.
Market Data Method ANS -Finding comparable properties that have recently sold
Cost Approach ANS -appraisal technique that analyzes the cost to build
Income Approach ANS -Review of comparable rental rates and market values in the property's area.
Rates are used to compare a gross rent multiplier.
ROI ANS -return on investment
REIT ANS -Real Estate Investment Trust
Like-Kind Exchange ANS -An investor can exchange real estate for real estate- an apartment house for
an office building. Being a like-kind Exchange qualifies the sale as a tax deferred exchange. Any
additional cash or personal property given with the property is considered boot and is taxable.
Debt Coverage Ratio (DCR) ANS -Ratio of net operating income to annual debt service. Expressed as net
operating income divided by annual debt service.
LOI (Letter of Intent) ANS -Spells out the parameters of the deal. Typically a non-binding agreement.
Types of Property Managers ANS -individual property manager
Licensed property manager
, resident manager
individual property manager ANS -Not required to be licensed by state as long as they manage as an
employee of the owner
Licensed property manager ANS -Licensed real estate agents who work for a property management
firm or a licensed broker who offers property management services
Resident Manager ANS -A manager of a property who lives on-site. May be employed by an individual
owner or by a property management firm.
Commission Collection Enforcement ANS -Broker must prove that he or she was employed, in writing
to sell the property
transaction log ANS -Records all transactions and the database modifications made by each transaction
commercial underwriter ANS -Perform risk analysis on loan & insurance applications. Process loan
apps, eval of payment agreement & terms of service.
hold harmless clause ANS -Tenants liability insurance will indemnify (defend) the landlord
indemnify ANS -Defend
GRM (Gross Rent Multiplier) ANS -The relationship between the amount of rent a specific property can
command, and the value of the property to the owner.
GRM formula ANS -GRM = price divided by monthly rent
Value = GRM times monthly rent
Types of anchor stores ANS -Grocery stores, pharmacies, department stores, or restaurants
questions with answers.
Properties for investment buyers ANS -Office, retail, industrial, apartments, muti-family
Market Value ANS -the amount for which something can be sold on a given market.
Market Data Method ANS -Finding comparable properties that have recently sold
Cost Approach ANS -appraisal technique that analyzes the cost to build
Income Approach ANS -Review of comparable rental rates and market values in the property's area.
Rates are used to compare a gross rent multiplier.
ROI ANS -return on investment
REIT ANS -Real Estate Investment Trust
Like-Kind Exchange ANS -An investor can exchange real estate for real estate- an apartment house for
an office building. Being a like-kind Exchange qualifies the sale as a tax deferred exchange. Any
additional cash or personal property given with the property is considered boot and is taxable.
Debt Coverage Ratio (DCR) ANS -Ratio of net operating income to annual debt service. Expressed as net
operating income divided by annual debt service.
LOI (Letter of Intent) ANS -Spells out the parameters of the deal. Typically a non-binding agreement.
Types of Property Managers ANS -individual property manager
Licensed property manager
, resident manager
individual property manager ANS -Not required to be licensed by state as long as they manage as an
employee of the owner
Licensed property manager ANS -Licensed real estate agents who work for a property management
firm or a licensed broker who offers property management services
Resident Manager ANS -A manager of a property who lives on-site. May be employed by an individual
owner or by a property management firm.
Commission Collection Enforcement ANS -Broker must prove that he or she was employed, in writing
to sell the property
transaction log ANS -Records all transactions and the database modifications made by each transaction
commercial underwriter ANS -Perform risk analysis on loan & insurance applications. Process loan
apps, eval of payment agreement & terms of service.
hold harmless clause ANS -Tenants liability insurance will indemnify (defend) the landlord
indemnify ANS -Defend
GRM (Gross Rent Multiplier) ANS -The relationship between the amount of rent a specific property can
command, and the value of the property to the owner.
GRM formula ANS -GRM = price divided by monthly rent
Value = GRM times monthly rent
Types of anchor stores ANS -Grocery stores, pharmacies, department stores, or restaurants
