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CRE 3
Various
| Question | Answer |
|---|---|
| The number at bottom of IS feeds to where on BS? | IT feeds into retained earnings |
| EGIM Multiplier formula? | Props sales price divided by effective gross sales. |
| The Akerson Format formula combos two items? | It combines mortgage lenders and equity investor's return together. |
| The lenders benchmark debt yield percentage? | 8% to 10% minimum lender's debt yield |
| What is the BS Retained earning cal? | Net income --- dividends paid to shareholders |
| 2 types of risk categories? | Systematic factors risk & property specific risk |
| It's used to project Income after current lease expires? | Market lease assumptions (MLA) |
| LOWEST LOAN RULE the max loan is? | The lowest output cal, across several test, debt yield, DSCR & LTV |
| What is the same as EBIT? | Operating income in the same as EBIT |
| My do lenders prefer debt yield to DSCR? | Because DSCR can drastically change due INT fluctuations and amortization schedules. |
| The ratio to Cal the occupancy level needed to cover debt expenses? | The Break Even Ratio |
| Remember the correct way to express debt yield as a percentage? | NOI divided by Loan amount, multiplied by 100 |