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

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

4. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Definitions for 100 A _____ return for the property than the cost of the mortgage results in “positive leverage”

5. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Definitions for 200 The proportion of debt financing used to purchase a property

6. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Definitions for 300 A constant return to debt is called “_______” debt

7. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Definitions for 400 The difference between the equity return and the debt return is called the _______

8. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Definitions for 500 “_______ Risk” arises from the possibility of the borrower defaulting on their loan obligations and ultimately losing the property to the lender through foreclosure

9. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Analytical for 100 Leverage involves allocating the lowest risk portion of the underlying property’s returns to the ______ holder, so the equity holder is left with the higher risk portion of the returns

10. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Analytical for 200 The most controllable risk category is ______

11. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Capital Structure refers to the relative proportion of ____ and debt in the real estate investment Analytical for 300

12. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Underlying _______ risk is magnified by a factor equal to the leverage ratio Analytical for 400

13. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Analytical for 500 A plot between the Expected Total Return and the Leverage Ratio results in the _____ Line

14. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner The _____ phase of the classic real estate cycle sees increasing rents and increasing construction Potpourri for 100

15. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Potpourri for 200 In the _____ phase in the classic real estate cycle, rental growth slows or stops while construction continues

16. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner In the ____ phase of the classic real estate cycle, rents decline and construction stops Potpourri for 300

17. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Potpourri for 400 ______ risks relate to the ability to convert an asset to cash while preserving capital

18. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner The _____ phase of the classic real estate cycle sees declining vacancy, little construction and increasing rents Potpourri for 500

19. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Numerical for 100 If the expected total return on an investment is 10% and the Risk Free Rate is 7%, then the ____ is 3%

20. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Numerical for 200 A property purchased with $600,000 of equity investment and $1,200,000 of loan will have a leverage ratio of _____

21. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Numerical for 300 When LTV=0.75 the LR=_____

22. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Numerical for 400 When LR=2 then the loan value will be ____________ equity value

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

24. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Daily Double Numerical for 500 When the LR=1, the Loan Value = ___

25. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Miscellaneous for 100 ______ trends involve a study of population and household size growth rates

26. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Miscellaneous for 200 If the debt is “_____” the lender stands to lose all or part of the return in case of default

27. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Miscellaneous for 300 The study of parking access in the subject property area falls under an analysis of this trend

28. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Miscellaneous for 400 Higher the leverage, the ____ will be standard deviation of the investment return of equity investor

29. “Real Estate Principles for the New Economy”: Norman G. Miller and David M. Geltner Miscellaneous for 500 _______ trends involve a study of employer and industry trends and regional competitiveness