Real Estate Math
A real estate agent earns a 3% commission on a $100,000 home. How much do they earn?
What is $3,000
I help people buy and sell homes, and I earn a commission when a sale closes.
Who is a real estate agent?
A legal agreement in which one party pays another for the temporary right to use and occupy real estate.
What is a lease?
This type of home is designed for one family and does not share walls with another home.
What is a single family home?
Revenue - Expenses = _____
What is profit?
A home sells for $250,000 with a 6% commission split evenly between two agents. How much does each agent receive?
What is $7,500?
I determine how much a property is worth by comparing it to similar properties and inspecting it.
What is an appraiser?
The monthly payment a tenant makes to occupy a property.
What is rent?
This property combines two or more uses
What is mixed use?
A property produces $60,000 in annual rental income and has $20,000 in annual operating expenses. What is its Net Operating Income (NOI)?
What is $40,000
A house worth $350,000 increases in value by 5%. How much is it worth now?
What is $367,500?
I collect rent, coordinate repairs, and communicate with tenants on behalf of the property owner.
What is a property manager?
This is the amount of money a buyer pays upfront toward the purchase of a home.
What is a down payment?
This property contains three separate living units.
What is a triplex?
an investors credit score can range from ___ to ____
What is 300 and 850?
A duplex rents each unit for $1,100 per month. What is the annual rental income?
What is $26,400?
I purchase land, obtain financing, oversee construction, and create new residential or commercial projects.
What is real estate developer?
This is the difference between what a home is worth and what the owner still owes on the mortgage.
What is equity?
In this type of ownership, you own your individual unit but share ownership of common areas like hallways, pools, and fitness centers.
What is a condo?
When an property value increases over time it is called ???
What is appreciation?
If I sell a single family home for 250,000 and multifamily home for 320,000 and get 20% commission how much money did I make?
What is $114,000?
I inspect homes for structural, electrical, plumbing, and safety issues before a buyer completes the purchase.
What is inspector?
This is the process of estimating the value of a property.
What is an appraisal?
This is land with no buildings or structures on it.
What is vacant land?
diversifying your investments by owning different types of properties help reduce this
What is risk?