Wall Street Prep Real Estate Financial
Modeling Exam Questions and
Answers10
what is a good rule of thumb for the amount of contingency to include in the budget as a
percentage of the total development budget - ANSWERS-5%
what marks the end of the stabilization period - ANSWERS-Burn-off of lease-up concessions
what is the difference between the market cap rate and yield-on-cost (YOC) - ANSWERS-
development spread
what is subtracted from Net Potential Rent (NPR) to calculate net effective rent (NER) -
ANSWERS-Concessions
how many different places can you typically find contingency in a development budget -
ANSWERS-three
what is a development fee - ANSWERS-compensation earned for managing the development
process
what are "untrended stabilized" revenues and expenses - ANSWERS-revenues and expenses
from a property if it were existing and stabilized today
why are interest reserves included in a development budget - ANSWERS-the lender will require
debt service payments during development
, Which of the following Real estate functions does not rely on financial Models - ANSWERS-
Tenants
Which of the following is not a formatting and layout best practice for financial modeling -
ANSWERS-always password protecting your model
In a model, what font color should hard-coded numbers (inputs) be - ANSWERS-Blue
which formula is frequently used in real estate financial models when dealing with dates and
timelines - ANSWERS-=EOMonth
what is a good way to keep track of assumptions when building a financial model - ANSWERS-
Microsoft Excel cell comments
Which of the following is not one of the main sheets of a real estate financial Model -
ANSWERS-Engine
Which of the following is a type of commercial model - ANSWERS-Office
Which of the following is a supporting tab for a multifamily model - ANSWERS-Historical
financials
Which of the following is a supporting tab for a commercial model - ANSWERS-Argus outputs
What is Argus - ANSWERS-A software program used to project cash flows for commercial
property types
real estate models are heavily reliant on which of the following - ANSWERS-Dates and Timelines
Modeling Exam Questions and
Answers10
what is a good rule of thumb for the amount of contingency to include in the budget as a
percentage of the total development budget - ANSWERS-5%
what marks the end of the stabilization period - ANSWERS-Burn-off of lease-up concessions
what is the difference between the market cap rate and yield-on-cost (YOC) - ANSWERS-
development spread
what is subtracted from Net Potential Rent (NPR) to calculate net effective rent (NER) -
ANSWERS-Concessions
how many different places can you typically find contingency in a development budget -
ANSWERS-three
what is a development fee - ANSWERS-compensation earned for managing the development
process
what are "untrended stabilized" revenues and expenses - ANSWERS-revenues and expenses
from a property if it were existing and stabilized today
why are interest reserves included in a development budget - ANSWERS-the lender will require
debt service payments during development
, Which of the following Real estate functions does not rely on financial Models - ANSWERS-
Tenants
Which of the following is not a formatting and layout best practice for financial modeling -
ANSWERS-always password protecting your model
In a model, what font color should hard-coded numbers (inputs) be - ANSWERS-Blue
which formula is frequently used in real estate financial models when dealing with dates and
timelines - ANSWERS-=EOMonth
what is a good way to keep track of assumptions when building a financial model - ANSWERS-
Microsoft Excel cell comments
Which of the following is not one of the main sheets of a real estate financial Model -
ANSWERS-Engine
Which of the following is a type of commercial model - ANSWERS-Office
Which of the following is a supporting tab for a multifamily model - ANSWERS-Historical
financials
Which of the following is a supporting tab for a commercial model - ANSWERS-Argus outputs
What is Argus - ANSWERS-A software program used to project cash flows for commercial
property types
real estate models are heavily reliant on which of the following - ANSWERS-Dates and Timelines
