Math formulas Flashcards
BALance sheet formula 1
assets = Liabilities + Owner’s equity
BALance sheet formula 2
Shareholders equity = share captial + retained
Straight line depreication method
annual depreciation expenses = cost - salvage value - estimated life
Building design eletric formula
watts = volts * amps
buildable floor area formula
FSR * lot size = foor area/ lot size
Replacement cost (cost method)
cost of building - depreciation + land value/ market value
Income method (for income producing buildings)
sale price = NOI (net operating income)/ market yield
Yield formula
Yield = NOI (net operating income)/ sales price
Capitalization Yield formula
1st % + 2nd %/ 2
gross realized revenue formula
Gross potential revenue -vacancy and bad debt = gross realized revenue
net operating income formula
gross potential rent - vacancy - operating expenses
Mortgage first step
M = LV * LTV %
Pmt commerical formula
pmt = income/ DCR
Pmt residental formula
Pmt = income / GSD - tax
T chart info. Where does the deposit go
any deposit to a buyer is a credit