If a comparable property sells for $1,200,000 and the effective gross income of the property is $12,000 per month, the effective gross income multiplier (EGIM) is:

Which of the following is a component of the feasibility study?

Assume that a city has a “rent gradient” such that land rent (and prices) rise as one approaches the center of economic activity.  Which of these changes in the local economy would tend to “flatten,” or reduce, the rent (price) gradient?

What is the purpose of the Highest and Best Use step in the Appraisal Process, for a specific subject property?

The majority of income producing (commercial) properties are classified for federal income tax purposes as:

Levin Equity Interests LLC has one active qualified broker and 11 licensed sales associates under its span-of-control. Upon the full execution of Purchase and Sales Agreements (PSAs), and within the time requirements of those PSAs, Levin Equity is equipped to hold earnest money deposits pending closing or other proper release. Levin Equity’s holding account serves as the following type of account:

The equity dividend rate:

Ratio analysis:

The phases of the real estate market cycle in sequential order are best represented by

Business Ethics Question. All students must answer   You are a mortgage lender making loans to first time home buyers. Your compensation and future promotions are partly based on the volume of loans you produce, but also on your reputation as an “upstanding” member of the company and the business community.  You have a loan product, your “Easy Own” loan, that can give you some advantage in generating loan volume. Specifically, you are able to offer a deferred interest ARM (adjustable rate mortgage) where payments are fixed during the first five years at a low rate – 100 basis points below the current adjustable rate. The compounded value of the reduced interest is added to the loan balance, resulting after five years in a six percent increase in the loan balance over the original amount, and as much as a 30 percent increase in the subsequent monthly payment based on the then market adjustable rate for the remaining 25 years on the loan.   You are able to qualify borrowers if their initial payment is no more than 28 percent of their current gross monthly income, so long as the borrower’s income is trending upward. The trouble is that most borrowers are overly optimistic about future income increases, and you know from experience that about a third of borrowers on this program will have some financial difficulty, and miss payments in a few years unless, at the time of loan application, they have a record of rising income.   But you know it is largely up to you to judge this record. You can be very “hardline” in requiring the record of income increases, or you can be very permissive (and borrowers will be able to qualify for about fifteen percent larger loans, and will be very happy), and your loan production will be higher.   What are the pros and cons in deciding whether to be a lenient lender?  Who is harmed either way?