Financial Management

Question 1

Who are you the advocate of?

Answer 1

The investor

Question 2

How do you impact the financial performance of the property?

Answer 2

Generate and collect income and control expenses

Question 3

What is gross potential rent? GPR

Answer 3

Rent that would be collected if a property was 100% occupied and all residents were paying market rent

Question 4

What is gross potential income? GPI

Answer 4

Income of occupied units at existing lease rates plus vacant units at current market rents

Question 5

What is an income statement?

Answer 5

Includes all revenue and expenses over a period of time. Compares current financial activity to the budget and identifies variances. Aka BCL

Question 6

What is cash flow?

Answer 6

Is the amount of money remaining after all income is collected and expenses are paid it is used to summarize financial activities into assess property performance

Question 7

What is positive cash flow

Answer 7

Refers to a positive amount of money remaining

Question 8

What is negative cash flow

Answer 8

Expenses exceeded income, and owner must put money into the operation of the property