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TEST Your Skills
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Real Estate Finance & Investments

Successful real estate investors & professionals can answer these questions using nothing more than a handheld calculator?

CAN YOU?

If this quiz stumps you, enroll now and let us help you take your real estate career to the next level.

QUESTION 1

ANSWER: The cap rate is  4.90% 

A property with a Scheduled Gross Income of $673,000 is selling for $6,950,000.  

The current vacancy is 8%, and the expenses total $278,913.

 

What is the Cap Rate?

QUESTION 2

ANSWER: The balloon payment will be  $2,542,049 

A property with $245,000 of Net Operating Income sells at a 7% cap rate.

The 30-year loan interest rate is 6.75% with a 7-year term and an 80% LTV.

 

How much is the balloon payment?

QUESTION 3

ANSWER: The most the buyer can pay is  $6,325,000 

An investor wants an 8% 

cash-on-cash return on in-place income on day-1. The loan is $3,825,000 at 6.25% fixed for 25 years.The NOI is $502,788.

 

What is the most the buyer can pay?