Chapter 8- Math and Equal Opportunity

Question 1

Pro forma

Answer 1

financial projections

Question 2

Property value is based on ability to generate income

Income=

Answer 2

means=yield=capital

Question 3

Potential Gross Income

Answer 3

Total income from all possible sources on annual basis

Question 4

TIMM- Operator expenses

Answer 4

Taxes-property
Insurance
Maintenance
Management

Question 5

DIDI (Not expenses)

Answer 5

D-Debt Service (Principal Interest)
I- Income Taxes (Property Taxes Are)
D-Depreciation
I- Improvements- Pool, New roof, New Parking lot,

Question 6

CAP Rate=

Answer 6

Risk number

Higher the CAP rate the higher the risk

Question 7

Cap Rate includes

Answer 7

Return on investment:
Return on investment in the improvements
Return of investments in the improvements (opportunity cost, depreciation, ect)

Assumes an all cash purchase
A higher cap rate favors the buyer
A lower cap rate favors the seller.

Question 8

What is good CAP rate

Answer 8

1.25 plus is good

For every dollar of debt a dollar of income.

Question 9

1978 US Constitution

Answer 9

Allowed continuation of slavery

Question 10

Dred Scott v. Sanford 1857

Answer 10

African decent not protected by constitution

Question 11

XIII Amendment (1865)

Answer 11

Abolished Slavery

Question 12

Civil Rights Act of 1866

Answer 12

Illegal to discriminate based on Race- was not defined and no penalty.

Question 13

Plessy v. Ferguson (1896)

Answer 13

Allowed continuation of segregation - separate but equal.

Question 14

Brown V. Board of Education (1954)

Answer 14

Abolished Slavery

Question 15

Civil Rights Act Title VIII (1968)

Answer 15

Fair Housing Act 
Race
Color 
Religion 
National Origin

Question 16

Blockbusting

Answer 16

Fear or panicked selling - sell before they get here- glasses person.

Question 17

Steering

Answer 17

Agent steers buyer to property where safer, happier, or better off.

Question 18

Redlining

Answer 18

Do not accept loans or insurance based on other than economic qualifications-

Question 19

3 groups that can discriminate

Answer 19

1) Private owner
2) Religious Organizations
3) Private Clubs

Question 20

Private owner guidelines for discriminating

Answer 20

1) No more than 3 single family homes
2)No broker services used
3)No discriminatory advertising
4) Not a dealer
5Mrs. Murphys Boarding House Rule

Question 21

Mrs. Murphys boarding house rule

Answer 21

Allowed to discriminate if in a 4-plex or less

Question 22

Jones Vs Mayer

Answer 22

Bans racial discrimination

HOA rules discriminate they are uninforcable.

Question 23

Fair Housing Act Amendment

Answer 23

Adds gender/sex, 1974

Question 24

Changes to Title VIII (1988)

Answer 24

Added Familial Status and Handicapped

Question 25

Familial Status

Answer 25

Any place you could live Pregnant women is family Per person, not per child 2 person per bedroom to be legal when renting

Question 26

Housing for older person exception

Answer 26

62 YEARS-100% of occupants must be 62+ 55 years- 80% 1 occupant in 80% in neighborhood Facilities and services not longer required Anyone can own

Question 27

Handicap/Disability

Answer 27

Any limitation of life activity 1) Exception: Current alcohol or drug use-not recovery 2) Existing Structures Prior to 1988-dont have to change 3) Rights to modify-Can modify but have to pay and put back. 4) Landlord can require liscensed contractors

Question 28

New construction for 1988 Fair housing

Answer 28

Accommodations- wider hallways ect Parking- Have to provide parking-if none available, next in line. Accessible to common areas-

Question 29

Pets VS assistive animals

Answer 29

cannot charge assisted animals anything until they do damage.

Question 30

RE Advertising logo Classified VS Display add

Answer 30

Classified- Text | Display Add- Need Logo

Question 31

Fliers and promo material

Answer 31

logo

Question 32

Internet advertizing

Answer 32

Logo on every page

Question 33

Broker office

Answer 33

Must have HUD poster

Question 34

Human models

Answer 34

May not be used to discriminate in social settings or demographics.

Question 35

Regulator Agency of Fair Housing Act

Answer 35

HUD

Question 36

HUD- Length of time to complain

Answer 36

1 year

Question 37

HUD- Length of time to investigate

Answer 37

10 days

Question 38

HUD- 1st fine

Answer 38

$16,000

Question 39

Equal Credit Opportunity

Answer 39

ECOA-1974 Prohibits credit discrimination on Race, color, religion, national origin, gender, age, marital status, or dependency on public services Protected by ECOA, but not protected classes 30 days to explain why loan denial borrower can rebuttal

Question 40

Title 1 ADA- Employment

Answer 40

Hiring and overseeing disabled employees 15 or more You must make accomodations

Question 41

Title lll Public Accommodations

Answer 41

Commercial- Mall, movie theater- Equal access to non disabled or disabled consumer Agents duties to disclose Penalties- $75,000-First offense, $150, 000 second

Question 42

How does ADA differ from Fair Housing

Answer 42

ADA is public or Work Fair Housing is housing New home development- only office and public space

Question 43

Equal Employment Opportunity Commission

Answer 43

20 or more | Equal pay for men and women