2. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Real Estate QUIZMASTER 100 200 300 400 500 DefinitionsAnalyticalNumericalMiscellaneousPotpourri

3. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Real Estate QUIZMASTER 100 200 300 400 500 DefinitionsAnalyticalNumericalMiscellaneousPotpourri

4. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Definitions for 100 Residual Value is the estimate of the net proceeds from the _____ of the property

5. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Definitions for 200 The pro-forma is an accounting style projection of the ______ statement over time

6. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Definitions for 300 ______ is the rent that might be collected on a property if it were 100% occupied.

7. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Definitions for 400 This is the sum of all mortgage payments required for the year including principal loan repayment as well as interest payment

8. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Definitions for 500 The ____ is that yield which makes the project Net Present Value zero

9. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Analytical for 100 This is the single most important estimate for the income approach to value

10. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Analytical for 200 This figure remains constant (fixed) over time in a pro-forma statement

11. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner The higher the LTV (loan to value) ratio, the ____ the expectation of return to equity investor Analytical for 300

12. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner “______” and “cap rate return” would be identical only if property is 100% Equity Analytical for 400

13. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Analytical for 500 This ratio gives an indication on initial (going-in) profitability of a property

14. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Taxable income times the tax rate equals taxes owed if taxable income is ______ Potpourri for 100

15. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Potpourri for 200 The DCR must exceed ___ in order for the property to be able to make the mortgage payments and have something left over

16. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner In a stable market rents might be expected to run at approximately the expected rate of _____ Potpourri for 300

17. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Potpourri for 400 After Tax Return on Equity = ????????? Cash Equity

18. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner If the property is 100% equity (no debt) then the ______ is equal to the before tax cash flow Potpourri for 500

19. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Numerical for 100 The DCR will be 1.25x on an NOI of $10,000 if the _____ is $12,500

20. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Numerical for 200 For a 15% ROA on a $100,000 property, the NOI needs to be _____

21. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Numerical for 300 The Expense Ratio will be 0.25 if the Total Operating Expenses are $5,000 and the _____ is $20,000

22. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Numerical for 400 If the Breakeven Point is 0.85, then the property could attain ____% vacancy and still break even

23. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner DAILY DOUBLE

24. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Daily Double Numerical for 500 If the PGI is $20,000 Total Operating Expenses run $8,000 and the Debt Service runs $10,000, the Breakeven Point is ______

25. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Miscellaneous for 100 The prudent property analyst will consider ‘reserves’ prior to estimation of _____

26. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Miscellaneous for 200 A F F O

27. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Miscellaneous for 300 C T O E

28. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Miscellaneous for 400 A T C F

29. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Miscellaneous for 500 Investors want as much debt as possible as long as the property can support the debt and the expected _____ on the property exceed the cost of the debt