Brokerage Basics
What document does a broker prepare to market a commercial property to investors?
Offering Memorandum
Which previous speaker focused on commercial real estate loan servicing and asset management?
Northmarq
What financial statement summarizes a property's historical income and expenses over 12 months?
T-12
In a typical real estate capital stack, which gets paid first: debt or equity?
Debt
What determines whether a property can be used for apartments, retail, or industrial purposes?
Zoning
What is the agreement called when a property owner hires a broker to market their property?
Listing agreement
Who tries to be the Four Seasons of Multifamily?
Kairoi
Which typically comes first in an acquisition: an LOI or a Purchase and Sale Agreement?
LOI
What does LTV stand for?
Loan-to-Value
Would concrete, framing, and roofing be classified as hard costs or soft costs?
Hard costs
What does LOI stand for?
Letter of Intent
Which previous speaker talked about industrial outdoor storage
Sagard
When a property has a low cap rate what does this indicate?
Low risk, Stabilized, etc
What is the term for the distribution structure that allocates profits among investors and sponsors?
Equity Waterfall
What are the fees often paid to a municipality to connect a new development to public water infrastructure?
Tap fees
A broker sells a property for $10 million and earns a 2% commission. How much do they make?
$200,000
Before Kairoi spoke, we discussed zoning, municipal fees, and the process of getting approval to build. What is that approval process generally called?
Entitlements
If cap rates increase while NOI stays constant, what happens to property values?
They decrease
What type of debt is subordinate to a senior mortgage?
Mezzanine Debt
What does FAR stand for in development?
Floor Area Ratio
What does BOV stand for in commercial real estate brokerage?
Broker Opinion of Value
Match all three speakers to their roles: development, investment management, and loan servicing.
Kairoi, Sagard, Northmarq
Name at least four real estate risk-return investment strategies. (Hint: one of them is core plus).
Core, Core Plus, Value-Add, Opportunistic
What is the term for investors being required to contribute additional equity?
Capital Call
What financing-related cost can increase significantly when construction is delayed?
Interest carry