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21 Cards in this Set
- Front
- Back
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What are the 2 key types of analysis
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Quick and dirty - Cash on cash, Payback period, GRM
Hardcore Analysis - Disc Cash Flow, NPV, IRR, Profitability Index |
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What are the 4 ways to make $$$ in Real estate
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Cash Flow
Debt Paydown K appreciation Tax Strategies |
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What is the pro forma for Cash Flow
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4 Reasons why you do not want to own an aligator
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Are you an Investor or speculator
If prices drop then forced to hold and pay for the privalige monthly or eat a sizeable loss TDS will quickly min the # you can buy If you loose your job then become a forced/distessed seller |
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How is GOIncome calculated? What numbers feed into it?
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What is an APOD? Why do we use it?
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What are the 2 paths (with detail) where NOI splits
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Less Mortgage Interest (X) Less Mortgage P+I (ADS) (X)
Add Bank Interest X Add Bank Interest X Less Depreciation (X) Less Capital Expenditure (X) Less Amortization (X) Taxable Profit or Loss (X) Cash Flow before Taxes (X) |
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What is Equity Build up
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Debt Paydown +
K Appreciation |
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What is Debt Paydown
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(Tenant) paying off your mortgage
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Use 5 or 10 year money
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consider 10 because cheap
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What am should we close a deal at and why
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Highest Am
because pay it off more aggressively and if get into difficulty then revert back to a smaller monthly amount |
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What are the 3 key mortgage criteria we are keen on seeing
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Prepayable - can pay Mort off more quickly than origional contract
Assumable - next buyer can take over mortgage (subj to him qualifying). Only if we are completely off mortgage. Portable - can carry it to the next property (provided same size or bigger Mort). Therefore get to avoid penalty or carry across a great rate |
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Difference between Fixed and Var Int rate
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3 mos int rate V larger of Int or IRD
Driven by BOC/var, Bond Mkt/Fix Fixed int rate for term V fixed to prime +/- say .7, but will move with prime. |
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What is K appreciation
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the rate of growth in value of an asset over a defined period of time.
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Whats the rule of 72
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Looks at the time taken for an asset to double in value given its expected annualk rate of return (72/10 = 7.2 years)
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Why is the concept of you make your monbey on the buy not the sell so important
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Buying right (for the right price) is the key. (Really does it cash flow when we run a set of approp rental and cost base figures). If you are relying on the greater fool theory then you are merely speculating
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What are the 2 animals when it comes to K Apprec
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Single family/Duplex - apprec driven by what the neighbourhood comps have done
Multiplexs - Driven by pur numbers (NOI and cap rates) |
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How is capital gains calculated for normal transaction. How does it work with 1. PPR 2. Lot of Churn
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What are the 2 legal structures we might consider and why
Do we hold in own name or corp and why If buying as a couple what must we cognicent of |
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What are the 2 legal structures we might consider and why
Do we hold in own name or corp and why If buying as a couple what must we cognicent of |
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Why might we consider selling fully owned unit and buying 2
How does VTB work and why might a seller consider doing it Why might we do an equity withdrawl and when is it tax deductible |
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