License Math 5 Flashcards
Leases, Taxation, Commissions, Seller's Net
1
Q
Percentage Lease Rent Calculation
A
Landlord receives a percentage of gross sales or net profits as the rental payment
2
Q
Rent Escalations
A
New Rent = current rent x (100% + escalation rate)
3
Q
Mill rate
A
= 1/10th of one cent
4
Q
Tax Base
A
= Assessed valuations - Exemptions
5
Q
Tax Rate
A
= Tax requirement / Tax base
6
Q
Seller’s Net
A
Sellers profit after expenses
= Sales Price - Commission - Closing costs - Loan balance
7
Q
Minimum Listing Price
A
Lowest amount the caller can list the property for and still cover all expenses and make the desired profit.
