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34 Cards in this Set
- Front
- Back
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1 section is |
640 acres |
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1 acre is |
43560 sq feet |
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1 lot is |
73,000 sq yards |
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How many baseline and meridian systems exits in CA? |
3 |
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A square yard is |
9 sq ft |
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township has |
36 sq mi. and it is diveded in 36 sections |
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A quarter section is |
160 acres |
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NOI Formula |
NOI (Net Operating Income)= CP (Cap Rate) x P (price) |
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GRM (Gross Rent Multiplier) |
GRM= Value property/Gross Rent Value (V)= Potential Gross Rent x GRM |
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Half section is |
320 acres |
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quarter section is |
160 acres |
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quarter of a quarter section |
40 acres |
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mile is |
5,280 ft or 320 Rods |
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square mile is |
27,878.400 sq ft (5,280 ft x 5,280 ft) or 640 acres (27878.400 sq ft / 43,560 sq ft) |
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square acre is |
209 ft x 209 ft |
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Yard is |
3 ft |
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rod is |
16.5 ft or 5.5 yards (16.5 ft/3 ft) |
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convert 50 percent to decimal |
0.50 |
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convert decimal 1.15 to percentage |
115% |
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convert fraction 4/5 to decimal |
0.8 |
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calculate the area of a rectangle |
A= L X W Area = Length x Width A = # sq ft |
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Fee |
F=% X P Percent (%) x Principal (P) % is the rate charged P is the dollar amount of the price, loan or rents |
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Rate |
R= F/P Rate= Fee/Principal |
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Principal |
P=F/% Principal= Fee/Percent |
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R.E. Property taxes |
In CA, Annual property taxes are based on 1% of the assessed value of the property + loan services fees which totals aprox 1.2% Assessed value of property is based on the original transfer price, sales price or amount stated by court in cases of divorce settlement or probate Improvements are added to the assessed value. total amount increases up to 2% annually under PROP 13 |
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to purchase a house is 400,000, after purchase it, the owner decide to installs a swimming pool for 50,000. this amount is added to the assessed value. The tax assessor raises the value 2% as allowed by prop 13. Then the current value is |
400,000+50,000 = 450,000 450,000 x 2% (0.02)= 9,000 450,000 +9,000= 459,000 |
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Transfer Tax or Transfer Tax Stamps |
$0.55 per $500 For values over 500 but less than 1000, the amount is rounded up It is one-time fee paid when title is transfered and recorded. |
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GRM Gross Rent Multiplier |
Value = Annual Gross Schedule Rent x GRM GRM is a valuation method to estimate value of an income-producing property. |
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Example of GRM. A comparable property that sold for 300,000 and had scheduled rents of 24,000 per year. Calculate GRM |
Value = Schedule rent x GRM 300,000= 24,000 X GRM 300,000/24,000 = GRM 12.5 = GRM |
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NOI Net operating income |
NOI= Rental income - Operating expenses |
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CAP RATE Capitalization Rate |
CAP RATE= NOI / Price asked or offered for income property |
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Example of CAP RATE, an apartment building sells for 3,000,000 and produces a NOI of 300,000 annually. what is the CAP RATE? |
CAP RATE= NOI/Price offered or asked CAP RATE= 300,000/3,000000 CAP RATE=10% OR 0.10 |
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buyer want to know the price of an income-producing property knowing that the annual NOI is 24,000 and he is seeking an annual rate of return of 12%? |
Price = NOI/Rate 200,000 |
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interest formula |
Interest=principal x rate x time. I=P.R.TExample: 1500= 25,000 X R X 8/12 1500= 16,667 X R 1500/16.667= R 0.09 = R 9%=R |
