CCIM 101 MODULE 4 Questions and Correct Answers

CCIM 101 MODULE 4
INVESTMENT VALUE - ANSWER THE PRICE AN INVESTOR IS WILLING TO PAY FOR A SPECIFIC
PROPERTY



(NOI) NET OPERATING INCOME - ANSWER .POTENTIAL RENTAL INCOME

. VACANCY AND CREDIT LOST

. OTHER INCOME ( LAUNDRY, VENDING MACHINE ETC)

. OPERATING EXPENSE



NOI IS CALCULATE - 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 - ANSWER THE OWNER PAYS ALL OF THE OPERATING EXPENSES



HYBRID LEASE - ANSWER WHO PAYS WHICH OPERATING EXPENSES IS NEGOTIATED BETWEEN
THE TENANT AND OWNER



ABSOLUTE NET LEASE - ANSWER TENANT PAYS ALL OPERATING EXPENSES



VACANCY AND CREDIT LOSSES - ANSWER INCOME LOST DUE TO VACANCY AN/ OR TENANT
DEFAULTING ON LEASE PAYMENTS.