You can always press Enter⏎ to continue
Real Estate Finance & Investment Skill Assessment
Get ready. Your life is about to change. 😉
15
Questions
START
1
Cap Rates
A property is selling for $2,950,000 that has a Scheduled Gross Income of $373,000. The current vacancy is 11%, and the expenses total $178,913.
What is the cap rate?
4.58%
5.19%
6.04%
I don't know
Previous
Next
Submit
Press
Enter
2
Loan Payoff
An investor secured a $3,875,000 loan at 5.2% with monthly payments amortized over 30 years. Five years later, they want to sell the property and pay off the loan in full. The lender’s prepayment penalty is 3%.
What is the payoff amount?
$3,568,336
$3,601,045
$3,675,386
I don't know
Previous
Next
Submit
Press
Enter
3
Cap Rates & Investments
An investor acquired a 42-unit property for $6 million at a 6.0% cap rate. During the holding period, they increased the SGI by an average of $128 per unit per month. Vacancy averages 3%. Management fees are 6% and all other operating expenses remain unchanged.
How much appreciation did the investor create if they sold the property at a 5.75% cap rate?
$1,039,845
$1,283,862
$1,552,109
I don't know
Previous
Next
Submit
Press
Enter
4
Balloon Payment
The price of a property is $3,750,000. The LTV is 70%, the interest rate is 7.75%, the amortization schedule is 30 years, and the loan term is 10 years.
What is the balloon payment?
$2,290,743
$2,334,095
$2,645,223
I don't know
Previous
Next
Submit
Press
Enter
5
Real Estate Investing
An investor bought an apartment complex five years ago for $5.25 million at a 6.5% cap rate. They secured a 75% loan at 4.5% interest amortized over 30 years. Today, the property is operating at a 9.0% cap rate based on the acquisition price, and they are considering selling the property.
What is the investor’s current return on equity?
13.9%
17.8%
20.1%
I don't know
Previous
Next
Submit
Press
Enter
6
Commercial Real Estate & Mortgage Loan Sizing
A commercial property has a Gross Rent Multiple of 12.2. The contract price is $2,837,720. Expenses are 35% of Scheduled Gross Income and vacancy is 3%. The debt service coverage ratio on the loan is 1.15, amortized over 30 yrs, and the interest rate is 5.5%.
What is the maximum loan amount on this property?
$1,840,498
$1,974,872
$2,012,998
I don't know
Previous
Next
Submit
Press
Enter
7
Mortgage Loan Terms
The price of a property is $1,200,000. The NOI is $90,000 and the seller will carry a note at 5% interest-only.
After how many years will the buyer have doubled his equity from principal paydown?
10 years
15 years
Never
I don't know
Previous
Next
Submit
Press
Enter
8
Mortgage Loan Analysis and Cash-on-Cash Return
An investor buys a property for $4.35 million at a 6.0% cap rate. They are able to secure a loan with a debt service coverage ratio of 1.25 and an interest rate of 4.75% amortized over 30 years.
What is the investor’s cash-on-cash return in the first year?
5.22%
5.96%
6.48%
I don't know
Previous
Next
Submit
Press
Enter
9
Mortgage Loan Analysis
The NOI of a property is $245,000. The cap rate is 7%. The LTV is 80%. The interest rate is 6.75%. The loan term is 7 years and the amortization is 30 years.
What will be the balloon payment at maturity?
$2,334,095
$2,542,049
$2,918,430
I don't know
Previous
Next
Submit
Press
Enter
10
DSCR and Mortgage Loan Analysis
An investor is buying a property for $7,000,000 at a 7.5% CAP. The debt service coverage ratio is 1.3, the term is 25 years, and the interest rate is 5.875%.
What is the investor’s maximum loan amount?
$5,285,816
$5,445,721
$5,603,392
I don't know
Previous
Next
Submit
Press
Enter
11
Investment & Mortgage Loan Analysis
A buyer on a property wants a cash-on-cash return of 8% on in-place income on day 1. The loan obtainable is for $3,825,000 at 6.25% and a 25 year term. The property’s NOI is $502,788.
What is the most the buyer can pay?
$6,125,000
$6,325,000
$6,575,000
I don't know
Previous
Next
Submit
Press
Enter
12
Mortgage Loan and Cost of Capital
An investor secures a 75% LTV loan on an investment property for sale at $4,750,000. The interest rate is 5.5%, the loan is amortized over 25 years, and the loan term is 7 years. The lender charges 2 discount points and $8500 in fees at origination. Four years later, the investor sells the property and pays off the loan with a 2% prepayment penalty.
What was the investor’s actual annual cost of capital on the loan?
5.58%
6.18%
6.58%
I don't know
Previous
Next
Submit
Press
Enter
13
DSCR, Investment, and Mortgage Loan Analysis
A buyer is preparing to write an offer on a property for $4,500,000 and wants to put down only 20%. The best available conventional loan provides for a 70% LTV at 7.5% interest with a 25-year amortization. The buyer asks that the seller carry an interest-only 2nd trust deed for the difference.
What is the maximum the interest rate could be on the 2nd to get the buyer’s total monthly payment to $26,650?
7.99%
8.49%
8.99%
I don't know
Previous
Next
Submit
Press
Enter
14
Your Score
Previous
Next
Submit
Press
Enter
15
Your Name
*
This field is required.
First Name
Last Name
Previous
Next
Submit
Press
Enter
16
E-mail :
*
This field is required.
Please indicate a correct E-mail address. Your score and the correct answers will be sent to this address.
We respect your privacy. We never share or sell your information and we won’t bombard you with countless emails.
Previous
Next
Submit
Press
Enter
Should be Empty:
Question Label
1
of
16
See All
Go Back
Submit