Quiz Summary
0 of 10 Questions completed
Questions:
Information
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading…
You must sign in or sign up to start the quiz.
You must first complete the following:
Results
Results
0 of 10 Questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 point(s), (0)
Earned Point(s): 0 of 0, (0)
0 Essay(s) Pending (Possible Point(s): 0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- Current
- Review
- Answered
- Correct
- Incorrect
- Question 1 of 10
1. Question
If you buy a property at a 6% cap with 50% leverage at 4%, what is the equity yield?
CorrectIncorrect - Question 2 of 10
2. Question
You sell a property for $21,000,000. It had a tax basis of $18,500,000 (this may also be referred to as the net book value, which includes all depreciation up to the date of the offer). You are considering buying a property that is $20,000,000. Could you use a 1031 exchange, and if so, how much gain could you defer?
CorrectIncorrect - Question 3 of 10
3. Question
Your firm is considering selling a building for $25,000,000. That property has a tax basis of $20,000,000. Your firm plans to sell the building and exchange the gains into another project, a redevelopment of an office building inside an Opportunity Zone for a single tenant on a 15-year NNN lease. The new project will cost approximately $40,000,000. If you model a sale at year 10 of the redeveloped office building at $45,000,000, what will be the taxable gain? (Assume 39-yr straight-line depreciation on the redeveloped building)
CorrectIncorrect - Question 4 of 10
4. Question
A CMBS (Commercial Mortgage Backed Securities) issuance has two tranches. What does it mean to be the “B” piece?
CorrectIncorrect - Question 5 of 10
5. Question
A real estate development project you are modeling includes a construction loan. The construction contract will include a 10% retainage provision. When modeling the monthly draws, would the following statement be true or false?
“Don’t worry about the retainage in the model- just input the equity or loan advance amount needed to pay the net draw amount.”
CorrectIncorrect - Question 6 of 10
6. Question
You are modeling a multi-family property utilizing 60% leverage. You have been instructed to complete a 10-year model, but to use permanent financing with only a five-year fixed rate term. How should you model the financing on the remaining five years?
CorrectIncorrect - Question 7 of 10
7. Question
What is the IRR to the Limited Partners under the following scenario?
- Waterfall is defined as: 9% pref, 75/25 to a 12%, then 50/50
- LP investment of $1,000,000
- Zero cash distributed during hold period
- Two year hold period
- $1,450,000 available cash for distribution
The IRR to the LPs is
CorrectIncorrect - Question 8 of 10
8. Question
What is the cash distributed to the General Partner under the following scenario?
- Waterfall is defined as: 9% pref, 75/25 to a 12%, then 50/50
- LP investment of $1,000,000
- Zero cash distributed during hold period
- Two year hold period
- $1,450,000 available cash for distribution
The GP will receive in cash
CorrectIncorrect - Question 9 of 10
9. Question
Which two of the following are appealing characteristics of CMBS financing to the borrower?
CorrectIncorrect - Question 10 of 10
10. Question
Your manager asks you to determine the optimal leverage on a project. Organize the following statements from most important to least important.
- Build a sensitivity analysis that demonstrates the effect of different leverage levels.
- Obtain reliable market intel on pricing and terms for different leverage points.
- Verify his or her assumptions for the investor waterfall.
- Document the number of venti triple shots it required to finish this model by the deadline.
View Answers:
CorrectIncorrect