Real Estate

Question 1

Good Guy Guarantee

Question 2

What are loss runs?

Answer 2

Loss runs are a written report that provides a snapshot of a business’s past insurance claims. These reports are generated by the insurance carrier and include details such as the type of claim, when it occurred, and how much has been paid out by the carrier.

Question 3

% rent natural breakpoint formula

Answer 3

base rent / sales %

Question 4

General Vacancy

Answer 4

(PGR + A + TV) * % of PGR - (A+TV)

Question 5

Valuation Formula

Answer 5

NOI / Cap Rate

Question 6

Chargeable Sales formula

Answer 6

Sales Volume - Breakpoint

Question 7

Leasing Commissions Formula

Answer 7

Base Rent + Step Rent - Free Rent

Question 8

Free Rent Formula

Answer 8

Base Rent + Fixed Steps + CPO

Question 9

Free rent consists of:

Answer 9

Base Rent, Fixed Steps, CPI Rent Increases

Question 10

General Vacancy can be measured as:

Answer 10

% of Potential Gross Revenue/Total Rental Revenue/ or Total Tenant Revenue

Question 11

Fixed % =

Answer 11

(expense amount * fixed %)(expense amount * variable % * occupancy %)

Question 12

Base Year Stop

Answer 12

(X1-X0) * net share = total

Question 13

The denominator is grossed up…

Answer 13

means to include extra figures in it

Question 14

What are capital calls?

Question 15

Cap Rate

Answer 15

high rate - riskier than a low cap rate

Question 16

Investment Time Frames

Answer 16

7-10 Years
5-7 year hold (income strategy)
3-4 year hold (value-add strategy)

Question 17

“bid-ask” spread

Question 18

Capital Markets

Answer 18

correspond to the buying community

Question 19

Cash Flows

Answer 19

Revenue
- OpEx
=NOI
-CapEx
=Property before tax Cash Flow

Question 20

YIELD

Answer 20

return metric

Question 21

basis points

Question 22

DSCR

Question 23

DIL

Answer 23

Deed-in-lieu

Question 24

guarantees and remedies

Question 25

preferred equity

Question 26

common equity

Question 27

guarantee terms

Question 28

enforcement of remedies

Question 29

COI

Question 30

Lease vs. License Agreement

Question 31

A/R

Question 32

YTD TB

Answer 32

Year to Date Trial Balance

Question 33

TIC agreement

Answer 33

Tenancy in common refers to arrangements under which two or more people co-own a parcel of real estate without a "right of survivorship." This type of co-ownership allows each owner to choose who will inherit his ownership upon death.

Question 34

TIA

Answer 34

Traffic Impact Analysis

Question 35

SUP

Question 36

Proforma

Question 37

"SWPPP"

Answer 37

stands for Storm Water Pollution Prevention Plan

Question 38

Flex Buildings

Answer 38

Flex buildings are, by design, “flexible” and allow for a wide range of office and warehouse uses.

Question 39

Tilt-up construction

Answer 39

Tilt-Up construction features series of concrete panels tilted up into place to form a building's exterior wall.

Question 40

MEP

Answer 40

“mechanical, electrical and plumbing.”

Question 41

GL

Answer 41

General Liability (GL) insurance, sometimes called small business liability insurance or commercial liability insurance, provides insurance coverage for your business against claims made by others including bodily injury, damage to property, or personal injury

Question 42

SWPPP

Answer 42

The acronym "SWPPP" stands for Storm Water Pollution Prevention Plan. SWPPPs are commonly associated with construction and industrial stormwater permits, which are issued by the Regional Water Quality Control Board.

Question 43

TRIA

Answer 43

The Terrorism Risk Insurance Act is a United States federal law signed into law by President George W. Bush on November 26, 2002. The Act created a federal "backstop" for insurance claims related to acts of terrorism.

Question 44

Free & Clear

Answer 44

w/o Debt

Question 45

"repay the loan at par"

Answer 45

The term “at par” means “at face value.” Bonds, preferred stocks, or other debt securities can be traded at par or at face value, below par, or above par. Par values are normally constant, as opposed to market prices, which fluctuate with consumer demand and interest rate movements.

Question 46

"promote"

Question 47

GP, LP

Question 48

Rescue Capital

Answer 48

Additional sources of equity at the time of loan refinancing if their is a gap.

Question 49

Preferred Equity, Common Equity

Answer 49

Preferred Equity investors can come in and are lined up ahead of Common Equity investors. They can structure their investment using Current Pay (regular payouts from operating income) or at an Accrual Rate (payout at milestone event)