Real Estate Investment: Understanding Cap Rates, Loans, and Analysis, Quizzes of Real Estate Management

Download Real Estate Investment: Understanding Cap Rates, Loans, and Analysis and more Quizzes Real Estate Management in PDF only on Docsity! TERM 1 Should I invest? DEFINITION 1 FirstUndertake Research to evaluate project TERM 2 CAP Rates DEFINITION 2 CR= (Net Income)/(Total Cost) x 100(Net income does not deduct loan payments)Total Cost= Purchase Price or Construction Cost = Investment TERM 3 Max Cost DEFINITION 3 Net Income / Market CAP Rate * 100 TERM 4 Where can i find info on cap rates DEFINITION 4 COSTAR, REIS, Real Estate Corporation Reports TERM 5 Types of Loans DEFINITION 5 AquisitionDevelopmentConstructionInterim or bridgePermanent TERM 6 Loan to Value DEFINITION 6 75%The loan-to-value ratio is a financial term used by lenders to express the ratio of a loan to the value of an asset purchased. TERM 7 Equity Partners? DEFINITION 7 Private InvestorsREITsJoint VenturesPension FundsInsurance CompaniesAffordable housing and Historical tax credits TERM 8 Justification and Documentation of Financing DEFINITION 8 Before you apply for loanit needs to be well done (analytically and presentation)Check assumptions with a loan officer before presentations (dialogue is correct)It can be long as hell TERM 9 3 Sustainable Development Parts DEFINITION 9 SocialEnvironmentalEconomic! TERM 10 2 Internal Analysis Points DEFINITION 10 Sales AnalysisCustomer Analysis