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29 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Acre = |
43,560 square feet |
Mnemonic old ladies |
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Area = |
Length×width |
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Assessed Value |
The value of property for tax purposes |
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"Cap" Rate |
A ratio between the net operating income and the original cost of the property |
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Discount Point |
1% of the loan amount (not the sales price) |
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Interest Definition |
A fee paid for the use of of another party's money. To the borrower it is the cost of renting money, to the lender the income from lending it |
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Mile = |
5,280 linear feet |
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Net Operating Income |
The gross income of a property minus the operating expenses. This figure does not include the payment on the outstanding debt (the loan). |
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Proration Definition |
To divide, distribute, or assess proportionately. Taxes, interests, rents, and insurance will be prorated at the closing and buyer and seller will pay their proportionate share. |
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Section of Land = |
640 acres |
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Square Feet = |
Length×Width |
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Square Yard = |
3' × 3' = 9 (There are 9 square feet in a square yard.) |
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Amortized Loan Definition |
A loan where the principal is paid down over the life of the loan |
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43,560 Square Feet = |
An acre |
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5,280 Feet = |
A mile |
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The Formula |
PART = RATE × BASE |
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Cap Rate Formula |
Net annual income = "Cap" Rate × Market Value (%) |
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Interest Formula |
Annual Interest = Annual Percentage Rate ("APR") × Loan Amount Principal |
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Discount Point Formula |
Dollar Amount of Points = Points % × Loan Amount |
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1 Point |
= 1% × Loan Amount |
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Banker's/Statutory Year |
360 days, (all months have 30 days) |
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Calendar Year |
364 days, use actual number of days (Feb has 28 days) |
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Prorated Taxes Formula |
Appraised Value × Tax Rate % = Ann. Tax ÷ 365 (or 360) × #Days =$_____. |
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Prorated Interest Formula |
Loan Amount × Int. Rate % = Ann. Int. ÷ 365 (or 360) × #Days=$_____. |
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Prorate Rents Formula |
Monthly Rent ÷ 31 (or 30 or 28) = Daily Rent × #Days =$____. |
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Prorated Hazard Insurance Formula |
Ann. Premium ÷ 364 (or 360) = Daily Premium × #Days = $_____. |
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Mortgage Payments are Due... |
On 1st of every month |
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Taxes and Insurances are paid... |
Annually |
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Property Tax Formula |
Annual Taxes = Tax Rate÷100 × Appraised Value |
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