TEST Your Skills
Real Estate Finance & Investments
Successful real estate investors & professionals can answer these questions using nothing more than a handheld calculator?
If this quiz stumps you, enroll now and let us help you take your real estate career to the next level.
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?
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?
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?