Term
| what rate is a measure of how quickly new space becomes occupied |
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Definition
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Term
| real estate markets are distinguished by what |
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Definition
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Term
| in the phoenix metropolitan area, the local economy is_____ and the real estate market is_____ |
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Definition
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Term
| What is the months supply in a market that is absorbing 30 units per month and has 30 vacant, completed units plus 90 units under construction |
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Definition
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Term
| a city will tend to grow over the long term if employment increases in: |
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Definition
| export (basic) activities |
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Term
| the axial model of urban growth results in a city that is: |
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Definition
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Term
| 2. The impact of the automobile and truck on cities, especially after WW2, was to increase the accessibility of more distant urban land causing what: |
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Definition
| causing the bid-rent curves in newer, developing cities to be flatter |
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Term
| The internal rate of return is that discount rate at which the: |
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Definition
| present value of future cash flows is equal to the initial cash flow |
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Term
| the purpose for a competitive rental income analysis is to: |
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Definition
| establish the rents that you believe should be charged for the property |
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Term
| a small office building has the following information: info table with 4 prices, what is the effective gross income (EGI) |
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Definition
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Term
| positive leverage can increase an investor's rate of return but: |
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Definition
| financial risk also increases |
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Term
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Definition
| the rate of return earned on current investments that is foregone in making new investments |
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Term
| in a pro forma analysis, taxable income is determined by starting with the net operating income and then: |
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Definition
| adding depreciation and subtracting interest expenses |
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Term
| under current tax law, non residential investment real estate has a depreciable life of ____ years and residential investment real estate has a depreciable life of _____ years |
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Definition
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Term
| the capitalization rate is |
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Definition
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Term
| property management is a: |
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Definition
| necessary operating expense associated with investing in real estate since it is a real asset |
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Term
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Definition
| goods or services "exported" from an area, creates jobs and spending, key to urban growth and decline |
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Term
| advantages of real estate investment |
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Definition
| depreciation is tax deductible, cash flow from operations, appreciation in value, financial leverage |
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Term
| disadvantages of real estate investment |
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Definition
| illiquid, recapture depreciation when sold, high transaction costs, risk |
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Term
| typical maximum L/V ratio for non owner occupied RE |
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Definition
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Term
| installment land contract |
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Definition
| legal agreement made by buyer and seller requiring payments to be made toward purchase of a property. Seller holds title while buyer essentially pays into a mortgage. Legally benefits seller as terms are harsh if buyer defaults |
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Term
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Definition
| DCR=NOI/DS, net operating income divided by debt service |
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Term
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Definition
| payment on mortage (service the debt) |
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Term
| internal rate of return(IRR) |
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Definition
| discount rate that equates all cash inflows to the initial cash outflows |
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