Real Estate week 5

Planation points rec eiv ed chapter 9 pages

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Unformatted text preview: tenant i n r etai l space to achi eve a cer tai n l evel of sal es or the l ease wi l l be ter mi nated. 2 of 2 (TCO 7) Whi ch of the f ol l owi ng does the ter m anchor tenant usual l y r ef er to? Som eone w ho l eases space The l ar gest tenant i n an of f i ce bui l di ng https://f r a me se t.ne xt.e c olle ge .c om/( NEXT( 41c 927c 49b) ) /Ma in/AllMode /Fr a me se tHybr id/Ge ne r a lFr a me se tVie w.e d 2/5 8/12/13 Gr a de book De ta il A depar tm ent stor e i n a m al l The tenant w ho pays the hi ghest r ent i n a m al l Ins tr uc tor Ex planation: Points Rec eiv ed: Chapter 9, Pages 280, 284 An anchor tenant r ef er s to a tenant that l eases a ver y l ar ge amount of space, usual l y a depar tment stor e i n a m al l . Comments : 7. Q ues tion : Student Ans wer : 0 of 2 (TCO 7) Whi ch of the f ol l owi ng i s TRU E f or a net l ease? Al l expenses ar e pai d by the ow ner Al l expenses ar e pai d by the tenant Al l expenses ar e pai d by the l ender Al l expenses ar e pai d by the i nvestor Ins tr uc tor Ex planation: Points Rec eiv ed: Chapter 9, Pages 272­273 Al l expenses ar e pai d by the tenant under a net l ease. Comments : 8. Q ues tion : Student Ans wer : 2 of 2 (TCO 7) Assume compar abl e sal es data shows that a capi tal i zati on r ate of .095 i s opti mal . If a subject pr oper ty has a NOI of $27,500, what val ue woul d a cap r ate appr oach yi el d (r ounded)? $289,474 $305,556 $289,447 $287,958 Ins tr uc tor Ex planation: Points Rec eiv ed: Chapter 10, Page 302 Val ue = NOI / R = $27,500 / .095 Comments : 9. Q ues tion : Student Ans wer : Ins tr uc tor Ex planation: Points Rec eiv ed: 2 of 2 (TCO 7) Whi ch of the f ol l owi ng f actor s i s NOT par t of the def i ni ti on of mar ket val ue? Paym ent i s m ade i n ter m s of cash i n U .S. dol l ar s or a compar abl e f i nanci al ar r angement The pr oper ty has been on the open m ar ket f or l ess than a y e ar Buyer and sel l er ar e typi cal l y m oti vated Pr i ce i s not af f ected by speci al or cr eati ve f i nanci ng Chapter 10, Page 296 Mar ket val ue r ef er s to when a payment i s made i n ter ms of cash i n U .S. dol l ar s or a compar abl e f i nanci al ar r angement, the buyer and sel l er ar e moti vated, and the pr i ce i s not af f ected by speci al or cr eati ve f i nanci ng. 2 of 2 Comments : https://f r a me se t.ne xt.e c olle ge .c om/( NEXT( 41c 927c 49b) ) /Ma in/AllMode /Fr a me se tHybr id/Ge ne r a lFr a me se tVie w.e d 3/5 8/12/13 Gr a de book De ta il 10. Q ues tion : Student Ans wer : (TCO 7) Whi ch of the f ol l owi ng steps nor mal l y woul d be used i n the cost appr oach to val ue? Esti m ate net oper ati ng i ncom e of the pr oper ty Mul ti pl y accr ued depr eci ati on by the assessed cost Add actual constr ucti on costs to the l and val ue Subtr act accr ued depr eci ati on f r om the r epl acem ent cost Ins tr uc tor Ex planation: Points Rec eiv ed: Chapter 10, Pages 324­327 The step of subtr acti ng accr ued depr eci ati on f r om the...
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