Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

Real estate Investment > Financial Spread Sheet > Flashcards

Financial Spread Sheet Flashcards

(61 cards)

Start Studying
1
Q

What should be entered in the WIREM Financial Analysis Spreadsheet?

A

Data should be entered in the yellow highlighted cells only.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What color tabs in the WIREM Financial Analysis Spreadsheet complete a before-tax cash flow analysis?

A

Blue tabs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What color tabs are used for comparison grids that calculate average adjusted effective rent figures?

A

Green tabs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What color tabs complete an after-tax cash flow analysis?

A

Orange tabs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What color tabs perform independent financial analysis computations?

A

Purple tabs.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is the first step to take when using the WIREM Financial Analysis Spreadsheet?

A

Always save a working version from the master file.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What password is used to unprotect a sheet in the WIREM Financial Analysis Spreadsheet?

A

irem

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is the formula for calculating Initial Equity?

A

Initial Equity = Ordinal basis - Loan Amount.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What variables are listed under ‘ANALYSIS VARIABLES’?

A
  • Loan Amount (S)
  • Loan Interest Rate (%)
  • Loan Pre-paid points (%)
  • Loan Amortization Period (years)
  • Loan Term/Balloon (years)
  • Loan Penalty (%)
  • Owner’s Required Return (%)
  • Going-IN Capitalization Rate (%)
  • Cost of Sale (%)
  • Loan Compounding Period
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

What is calculated in the INITIAL LOAN ANALYSIS section?

A
  • Annual Debt Service (ADS)
  • Loan to Value Ratio (LTV)
  • Effective Loan Interest Rate (EFl%)
  • Debt Coverage Ratio (DCR)
  • Free-and-Clear Rate of Return
  • Loan Constant (k)
  • Cash-on-Cash Rate of Return (S/S%)
  • Leverage Position
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Fill in the blank: The formula for Current Equity is _______.

A

Current Equity = Current Market Value - Cost of sale - Current Loan Balance + Cash-Out Potential + Capital Improvements - New loans (Mid Stream) + New Points, Fees.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is the purpose of the MIDSTREAM ANALYSIS section?

A

To analyze financial metrics if applicable during the midstream period.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

True or False: The ‘Going-OUT Capitalization Rate’ is part of the MIDSTREAM LOAN ANALYSIS.

A

True

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What are the components of the ‘INITIAL ANALYSIS’ section?

A
  • Purchase Price
  • Acquisition Expenses
  • Points, Fees
  • Ordinal basis
  • Loan Amount
  • Initial Equity
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

What is the significance of the Loan to Value Ratio (LTV)?

A

It measures the ratio of a loan to the value of an asset purchased.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

What does the Debt Coverage Ratio (DCR) indicate?

A

It indicates the ability to service debt with income generated.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Fill in the blank: The formula for Free-and-Clear Rate of Return is _______.

A

Free-and-Clear Rate of Return = Net Operating Income / Total Equity.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

What does the Cash-on-Cash Rate of Return (S/S%) represent?

A

It represents the cash income earned on the cash invested.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is the formula for calculating effective rent per unit?

A

Base rent - Concessions + Diner income

This formula helps determine the actual income generated from a rental property after accounting for any concessions or discounts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What factors are considered in the building condition category?

A
  • Exterior
  • Grounds
  • Common areas
  • Public lighting
  • Other

These factors assess the overall state and upkeep of the property.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

What are some unit interior features to evaluate?

A
  • Unit Floor Plan
  • Drapes/blinds
  • Washer/dryer
  • Closets/storage
  • Flooring
  • Other

These features can significantly impact tenant satisfaction and rental value.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What utilities might be owner-paid in a rental property?

A

Owner paid utilities

This can include water, electricity, gas, and other essential services provided by the property owner.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What does the term ‘Adjusted effective rent/unit’ refer to?

A

Total rent adjustments applied to effective rent

This value reflects the changes made to the effective rent based on various adjustments.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

In the retail comparison grid, what is the significance of parking availability?

A

It affects tenant attraction and customer access

Adequate parking can enhance the desirability of retail spaces.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Fill in the blank: The effective rent is calculated as Base rental rate - Concessions + _______.
Exp. pass-through ## Footnote This formula is essential in retail property analysis.
26
What does the term 'tenant mix synergy' refer to?
The compatibility and collective appeal of different tenants in a retail space ## Footnote A strong tenant mix can enhance foot traffic and sales for all tenants.
27
True or False: The vacancy rate is an important factor in assessing the performance of a retail property.
True ## Footnote A high vacancy rate may indicate issues with property appeal or market conditions.
28
What is the purpose of the 'Average adjusted effective rent' in property comparisons?
To provide a benchmark for evaluating rental income across multiple properties ## Footnote This average allows for more informed decision-making in property management and investment.
29
List three categories evaluated in a residential comparison.
* Location * Age * Building condition ## Footnote These categories help assess the overall value and attractiveness of residential properties.
30
What is the formula for calculating effective rent per unit?
Base rent - Concessions + Diner income ## Footnote This formula helps determine the actual income generated from a rental property after accounting for any concessions or discounts.
31
What factors are considered in the building condition category?
* Exterior * Grounds * Common areas * Public lighting * Other ## Footnote These factors assess the overall state and upkeep of the property.
32
What are some unit interior features to evaluate?
* Unit Floor Plan * Drapes/blinds * Washer/dryer * Closets/storage * Flooring * Other ## Footnote These features can significantly impact tenant satisfaction and rental value.
33
What utilities might be owner-paid in a rental property?
Owner paid utilities ## Footnote This can include water, electricity, gas, and other essential services provided by the property owner.
34
What does the term 'Adjusted effective rent/unit' refer to?
Total rent adjustments applied to effective rent ## Footnote This value reflects the changes made to the effective rent based on various adjustments.
35
In the retail comparison grid, what is the significance of parking availability?
It affects tenant attraction and customer access ## Footnote Adequate parking can enhance the desirability of retail spaces.
36
Fill in the blank: The effective rent is calculated as Base rental rate - Concessions + _______.
Exp. pass-through ## Footnote This formula is essential in retail property analysis.
37
What does the term 'tenant mix synergy' refer to?
The compatibility and collective appeal of different tenants in a retail space ## Footnote A strong tenant mix can enhance foot traffic and sales for all tenants.
38
True or False: The vacancy rate is an important factor in assessing the performance of a retail property.
True ## Footnote A high vacancy rate may indicate issues with property appeal or market conditions.
39
What is the purpose of the 'Average adjusted effective rent' in property comparisons?
To provide a benchmark for evaluating rental income across multiple properties ## Footnote This average allows for more informed decision-making in property management and investment.
40
List three categories evaluated in a residential comparison.
* Location * Age * Building condition ## Footnote These categories help assess the overall value and attractiveness of residential properties.
41
What does 'Net Operating Income (NOI)' refer to?
Net Operating Income (NOI) is the income generated from a property after operating expenses are deducted.
42
What is the purpose of a 'Lease Buy-out'?
A Lease Buy-out is a financial agreement where a tenant pays to terminate their lease before its expiration.
43
Fill in the blank: The __________ is the financial metric indicating the ratio of a property's net operating income to its total debt service.
Debt Coverage Ratio (DCR)
44
What does 'Loan-to-Value Ratio (LTV)' represent?
Loan-to-Value Ratio (LTV) is the ratio of a loan to the value of an asset purchased.
45
What is meant by 'Annual Amortization Rate for Recoverable Concessions'?
It refers to the rate at which recoverable concessions are amortized annually.
46
True or False: The 'Effective Interest Rate' is the nominal interest rate adjusted for compounding.
True
47
What is 'Maximum LTV (%)'?
Maximum LTV (%) is the highest allowable loan amount relative to the property's value.
48
List the components of 'Lender Terms'.
* Loan Interest Rate (%) * Loan Amortization Period (years) * Loan Pre-paid points % of original loan * Loan Balloon Term (years) * Loan Pre-payment Penalty (% of then-current balance)
49
Fill in the blank: The __________ is the total expected return from an investment, expressed as a percentage of the equity invested.
Cash-on-Cash Rate of Return ($/%)
50
What does 'Landlord Opex Stop (psf)' signify?
Landlord Opex Stop (psf) indicates the expense amount per square foot at which the landlord's responsibility for operating expenses ceases.
51
What is 'Annual Discount Rate for Analysis' used for?
It is used to determine the present value of future cash flows.
52
True or False: 'Monthly Debt Service' refers to the total amount of money paid monthly for loan repayment.
True
53
What is 'Anticipated Pre-payment at end of year'?
It is the expected amount to be prepaid on a loan at the end of the year.
54
Fill in the blank: The __________ is the amount remaining on a loan at the time of the final payment.
Balance at Final Payment Date
55
What does 'Free-and-Clear Rate of Return' indicate?
It indicates the return on investment for a property without any debt.
56
What is the significance of 'Beginning Opex (cost)' in a financial analysis?
Beginning Opex (cost) refers to the initial operating expenses incurred at the start of the analysis period.
57
What does 'Landlord Tax Stop (psf)' represent?
Landlord Tax Stop (psf) defines the tax amount per square foot at which the landlord's responsibility for property taxes stops.
58
List the different 'Rent Levels' mentioned.
* Rent Level 1 * Rent Level 2 * Rent Level 3 * Rent Level 4 * Rent Level 5 * Rent Level 6 * Rent Level 7 * Rent Level 8 * Rent Level 9 * Rent Level 10 * Rent Level 16 * Rent Level 17 * Rent Level 18
59
What is the 'Amort. Term' in lease agreements?
Amort. Term refers to the duration over which a loan or lease payment is amortized.
60
What is the function of 'What-if Analysis' in real estate finance?
What-if Analysis allows users to simulate different financial scenarios based on varying inputs.
61
Fill in the blank: The __________ is the financial model used to analyze the potential future performance of an investment property.
Leverage Analysis Tool

Real estate Investment (3 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions