Settlement, Prorations, Investments 14 Flashcards
Income Remaining After the Operating Expenses (Deducted From) Effective Gross Income.
Net Operating Income -
Income Remaining After Operating Expenses (Deducted From) Effective Gross Income.
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Detailed Accounting Prepared by Escrow, shows:
- Cashed Received
- All Charges Debit/Credit
Closing Statement
Detailed Accounting Prepared by Escrow shows:
- Cashed Received
- All Charges Debit/Credit
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Proportional Division or Distribution of Funds (30 Days Used)
Prorations -
Proportional Division or Distribution of Funds (by 30 dys used)
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Owner pays in Arrears - Debit or Credit?
- Real Estate Taxes (Arrears) - Seller ___ Buyer ____
- Interest on Loans (Arrears) - Seller ___ Buyer ____
- Water Bills (Arrears) - Seller ____ Buyer ____
Arrears - Means overdue payment
Owner pays in Arrears: (Debit Seller)
Seller Debit / Buyer Credit
- Real Estate Taxes (Arrears) - Seller Debit / Buyer Credit
- Interest on Loans (Arrears) - Seller Debit / Buyer Credit
- Water Bills (Arrears) - Seller Debit / Buyer Credit
Arrears - Means overdue payment
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Owner pays in Advance
- Pre-paid Taxes (Advance) - Seller ____ / Buyer _____
- Insurance Premiums (Advance) - Seller ____ / Buyer ____
- HOA (Advance) - Seller ______ / Buyer _____
- Propane (Advance) - Seller ______ / Buyer ______
Owners pays in Advance: (Seller Credit)
- Pre-paid Taxes (Advance) - Seller Credit / Buyer Debit
- Insurance Premiums (Advance) - Seller Credit / Buyer Debit
- HOA (Advance) - Seller Credit / Buyer Debit
- Propane (Advance) - Seller Credit / Buyer Debit
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Rental Properties:
- Prorated Rent - Seller ____ / Buyer _____
- Security Deposits - Seller _____ / Buyer _____
Rental Properties:
- Prorated Rent - (Seller Debit / Buyer Credit)
- Security Deposit - (Seller Debit /Buyer Credit)
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Closing Cost: credit/debit to who (soley)?
- Loan Origination Fee - Buyer ______
- ALTA Title Insurance - Buyer _____
- Owner Policy - Seller _____
- Commission - Seller ______
- Escrow Fee - Seller _____/ Buyer _____
Closing Cost (debit/credit):
- Loan Origination - Buyer Debit
- ALTA Title Insurance - Buyer Debit
- Owner Policy - Seller Debit
- Commissions - Seller Debit
- Escrow Fee (Seller/Buyer Debits)
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“Solely Credited” to Buyer and not shown on seller’s side
- E____ Money - Buyer Credit
- N___ L___ - Buyer Credit
“Solely Credited” to Buyer and not shown on seller’s side
- *Earnest Money: Buyer Credit
- *New Loan: Buyer Credit
All Closing Cost as - Seller Debit and Buyer Credit
- Seller C___b____: (Seller Debit / Buyer Credit)
- R___ C_____: (Seller Debit / Buyer Credit)
- Sec____ Dep____: (Seller Debit / Buyer Credit)
- T____ (Arrears): (Seller Debit / Buyer Credit)
- W____ (Arrears): (Seller Debit / Buyer Credit)
Seller Carryback - aka Purchase Money Loan. Seller becomes the Lender; Buyer the borrower. Used as loan to borrower for downpayment.
All Closing Cost as - Seller Debit and Buyer Credit
- Seller Carryback: (Seller Debit / Buyer Credit)
- Rent Collected: (Seller Debit / Buyer Credit)
- Security Deposit: (Seller Debit / Buyer Credit)
- Taxes (Arrears): (Seller Debit / Buyer Credit)
- Water (Arrears): (Seller Debit / Buyer Credit)
Seller Carryback - aka Purchase Money Loan. Seller becomes the Lender; Buyer the borrower. Used as loan to borrower for downpayment.
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Closing Cost - Soley - Seller Debits
- **Com_____- Seller Debit
- **O____ T___ P____ - Seller Debit
All Closing Cost (Debit/Credit)
- **Commission: Debit Seller
- **Owner Title Policy: Debit Seller
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Projected Rent if Property is 100% Occupied is called?
- Contract Rent + Market Rent (Vacancies)
Gross Scheduled Income (Annual):
Projected Rent if Property is 100% occupied.
Contract Rent + Mkt Rent (Vacancies)
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Units not rented are called?
Vacancies -
Units not rented
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Rent which was owed by a tenant but not collected is?
Credit Losses -
Rent which was owed by a tenant but not collected
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Actual Income Received After Deducting Vacancies and Credit Losses from the Gross Scheduled Income
- Gross Schedule Income
- - Vacancies
- - Credit losses
- =
Effective Gross Income -
Actual Income Received After Deducting Vacancies and Credit Losses from the Gross Scheduled Income
- Gross Schedule Income
- Vacancies
- Credit losses
- = Effective Gross Income
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Income Props Operate Expenses - Not Mortgage (PI) /Depreciation:
- Pr___ Mgmt F___
- Rep____
- Main_____
- Ut______
- T___ and In______
- Ad_______
Inc Props Oper Expenses - Not Mortgage (PI)/Depreciation:
- Prop Mg Fee 4. Utilities
- Repairs 5. Tax/Ins
- Maintenance 6. Ads
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The Principal and Interest Payments on the Loan.
Debt Service -
The Principal and Interest Payments on the Loan.
Chap 14
Amount Left after Operating Expenses and Debt Service Paid; Before Income Taxes. Formula:
- Gross Schedule Income
- - Vacancy and Credit Losses
- = Effective Gross Income
- Effective Gross Income - Operating Expenses
- = Net Operating Income (NOI)
- Net Operating Income - Debt Service (PI)
- = What? (Before Income Taxes)
Cash Flow (Before Income Taxes) -
Amount Left after Operating Expenses and Debt Service Paid and Before Income Taxes
- Gross Schedule Income (Proj Rents 100%)
- - Vacancy (@ Market) and Credit Losses
- = Effective Gross Income
- Effective Gross Income - Operating Expenses
- = Net Operating Income (NOI)
- Net Operating Income - Debt Service (PI)
- = Cash Flow (Before Income Taxes)
Chap 14
Income from Salaries, Wages, Commissions, and Interest.
Ordinary Income -
Income from Salaries, Wages, Commissions, and Interest.
Chap 14
Income Realized from the Sale of an Asset as a Profit.
- Short Term - Asset - L___ than _ Year
- Long Term - Asset - M___ than _ Year
Capital Gain Income -
Income Realized from the Sale of an Asset as a Profit.
- Short Term - Asset - 1 Year or Less
- Long Term - Asset - More than 1 year
Chap 14