Appraisal
Method of appraisal used for income generating properties to estimate market value.
What is the income approach?
A mortgage is made up of these two documents.
What is a note (details financial rights and obligations) and a mortgage (pledges property as collateral)?
These are the most common types of commercial mortgages.
What is a balloon loan?
This is the difference between a broker and a salesperson.
What is a broker can operate their own agency?
This is a type of loan that has shifting rates.
What is an ARM (adjustable rate mortgage)?
Potential gross income - vacancy and collection loss + miscellaneous income = effective gross income - operating expenses
What is Net Operating Income (NOI)?
This limitation limits the change in interest rate from one date to the next in an ARM.
What is a periodic cap?
These four means of financing are alternative to a traditional commercial mortgage.
What are floating rate loans, a joint-venture, sale-leasebacks, and mezzanine financing?
This is created when a seller and a broker enter an agreement.
What is a listing contract?
What are discount points?
What is Direct Capitalization (V0 = NOI1/R0)?
This happens when a person fails to meet the requirements of the note.
What is default (which could lead to foreclosure)?
This is the term to describe when firms use short-term debt to finance long-term assets (like properties).
What is maturity mismatching?
What is pricing, marketing, legal obligations, potential customers, etc?
Because of DP, a lender can earn this, which is greater than the quoted rate.
What is the lender's yield?
Equation used to find final cash flow (cash flow in year 5) used in DCF method
What is CF5= exit value - selling expense + PBTCF5
Exit value = V5=NOI6/R5
These are the two mortgage markets.
What are the primary market (initial mortgage loan) and secondary market (bought/sold bundles of mortgage loan portfolios)?
These are examples of other debts you may need to take on to develop a commerical property.
What is land acquisition financing, land development financing, and construction financing?
Duties: Disclosure, Confidentiality, Accounting, Obedience, Loyalty, Skill & Care
What are the duties under the Law of Agency?
What is the effective borrowing cost?
Equation used in DCF method to estimate market value.
CF5=V5 - selling expense + CF6
These are the two major types of risk that a mortgage bankers are sensitive to.
What is fallout risk (loan applicant backs out when rate falls) and interest rate risk (fall is value before sale)?
This is a major difference between most residential mortgages and commercial mortgages.
What is a prepayment condition?
This regional database may be involved in when a broker uses a subagency.
What is a multiple listing service (MLS)?
This is the monthly payments on a 1-year $100,000 (1/1) ARM with a 30y amortization. Index rate is 3.25% with a 2.75% margin, and the teaser rate is 4.5%.
PMT = 506.68