Equations

Question 1

Commission

Answer 1

Sales price x rate of commission = total commission

Question 2

Net to Seller

Answer 2

Sales price x percent to seller = net to seller

Question 3

Profit/Loss on Sale

Answer 3

Investment x percent of profit/loss = dollars in profit/loss

Question 4

1 Acre = 43,560 sq feet
1 sq mile = 640 acres

Answer 4

Area = L x W
Triangle is .5 x base x height

Or base x height / 2

Question 5

As valorem property taxes

Answer 5

Assessed value x tax rate = annual taxes

Question 6

Interest

Answer 6

Loan balance x rate of interest = annual interest

Question 7

Fees and Points

Answer 7

Loan x points (%) = dollars in points

Question 8

Loan to Value (LTV) Ratios

Answer 8

Loan / value (purchase price) = ratio

Question 9

Prorations at Closing

Answer 9

Day of closing charged to seller
30 day months

Price per day x days til closing = prorated total

Question 10

Capitalization

Answer 10

Investment (or value) x cap rate = annual net income

Cap rate = annual income / value

Question 11

Depreciation (or appreciation)

Answer 11

Original value x % of value NOT lost = present value

Question 12

Income Tax

Answer 12

What are you allowed to deduct?
Only mortgage interest and property taxes for principal residence.
If renting it out you can also deduct insurance, maintenance fees, lease rents.

Question 13

Basis (for long term improvements)

Answer 13

Purchase price + improvements = basis

Question 14

Gross rent multiplier

Answer 14

Price / yearly gross income = GRM

This time the total price is entered first (not the part)

Question 15

Property tax

Answer 15

Value x rate = property tax