“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Real Estate QUIZMASTER

100 100 100 100 100

200 200 200 200 200

300 300 300 300 300

400 400 400 400 400

500 500 500 500 500

Definitions Analytical Numerical Formulae Acronyms

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Real Estate QUIZMASTER

100 100 100 100 100

200 200 200 200 200

300 300 300 300 300

400 400 400 400 400

500 500 500 500 500

Definitions Analytical Numerical Formulae Acronyms

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Definitions for 100

This term refers to the ability of an investor to increase the returns on equity through the use of debt

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Definitions for 200

The rent that can be collected on an annual basis assuming that a property is completely occupied

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Definitions for 300

_______ real estate investment refers to owningthe investment via thepublic markets and securities which may be traded

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Definitions for 400

This “basis” of a real property is what the owner has invested in it, which includes the portion bought with debt, less accumulated depreciation

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Definitions for 500

The average increase in all prices weighted based on typical consumption

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Analytical for 100

How aggressively an investor tries to accumulate wealth depends on his _____

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Analytical for 200

The IRR is a number which causes the discounted sum of all future returns to be exactly equal to ___

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Riskfree investments are estimated by _______ securities

Analytical for 300

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

More leverage ________ the variability of returns

Analytical for 400

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Analytical for 500

When mortgage payments are made, principal repayment enhances the investor’s equity in

the property unless…

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

G I G O

Acronyms for 100

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Acronyms for 200

N O I

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

I R RAcronyms for 300

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Acronyms for 400

Y M

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

R O A

Acronyms for 500

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Numerical for 100

The IRR required by most real estate investors for the last several years has tended to run about ____ for conservative low risk investments

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Numerical for 200

A bond purchased for $900 which pays an annual end of year coupon of $90 per year with a maturity value of $1,000 in exactly two years has a Current Yield of _____

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

DAILY DOUBLE

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Daily Double Numerical for 300

A bond purchased for $900 which pays an annual end of year coupon of $80 per year with a maturity value of $1,000 in exactly two years has a YM of _____

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Numerical for 400

If we bought a property for $200,000 with $50,000 down as equity and the first and second year before tax cash flows are $6,000 and $8,000 respectively, then the Year Two ROE = __________

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Numerical for 500

If we bought a property for $200,000 with $50,000 down as equity and the first and second year before tax cash flows are $6,000 and $8,000 respectively, then the Year One ROA = __________

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Formulae for 100

Gross Rent – Vacancy =

??????????

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Formulae for 200

Stock Current Returns

= ??????????Stock Price

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Formulae for 300

NOI - ??????????? =

Cash Flow (before tax)

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Formulae for 400

Bond Current Returns

= ???????????Bond Price

“Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner

Formulae for 500

????????? –

Operating Expenses

= NOI