2. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Real Estate QUIZMASTER 100 200 300 400 500 PotpourriAnalyticalNumericalMiscellaneousAcronyms

3. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Real Estate QUIZMASTER 100 200 300 400 500 PotpourriAnalyticalNumericalMiscellaneousAcronyms

4. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Potpourri for 100 This valuation approach is derived from the wealth maximization principle

5. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Potpourri for 200 Shorter economic life results in a _______ cap rate

6. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Potpourri for 300 Cap rates will be _____ when the property expects fast income growth

7. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Potpourri for 400 While using ____ in valuation, it is essential that they should have similar risks and be in a similar geographical submarket

8. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Potpourri for 500 The easiest way to value a property with very little information about its _____ or operating expenses is to use GRM

9. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Analytical for 100 NOI / R is the traditional _____ approach to value

10. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Analytical for 200 When relevant sales information is not available the _____ can found by “weighed average cost of capital”

11. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner The traditional income approach (NOI/R) presumes that the property has infinite ______ life Analytical for 300

12. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner The greater the risk, the ____ will be the cap-rate Analytical for 400

13. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Analytical for 500 Investment values are unique to the investor and can be higher or lower than the ____ value

14. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner R R R Acronyms for 100

15. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Acronyms for 200 IR R

16. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner PG I Acronyms for 300

17. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Acronyms for 400 DCFDCF

18. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner GRMGRM Acronyms for 500

19. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Numerical for 100 The Cap Rate used to determine a value of $3,000,000 based on an NOI of $300,000 is ____

20. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Numerical for 200 If an office building worth $10 million is being sold by the owner for $9 million, then the seller’s NPV is _____ and the buyer’s NPV is _____

21. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Numerical for 300 If the monthly mortgage constant is 0.008, LTV ratio is 0.8 and the investor requires a yield of 20% on his equity, the Cap Rate is _____

22. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Numerical for 400 At 7.5% interest per annum and 25 year amortization the monthly mortgage constant will be _______

23. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Numerical for 500 If the LTV is 75%, the before tax cash return is 15% and the monthly mortgage constant is 0.09, then the weighted Cap Rate is ____

24. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Miscellaneous for 100 Total Property Value = Mortgage Value + _____ Value

25. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Miscellaneous for 200 Even if the mechanics of the DCF process are carried out correctly, the problem with the analysis may still have fallen into the ____________ mistake

26. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Miscellaneous for 300 An investor should become suspicious about the value analysis if A property with substantially _____ NPV has remained unsold for long time

27. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Miscellaneous for 400 This valuation approach has similarities to the “benefit-cost” analysis used in public sector

28. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner DAILY DOUBLE

29. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Daily Double Miscellaneous for 500 Supportable Mortgage = NOI/DCR/12/??????