Graaskamp has argued that real estate feasibility analysis
divides conveniently into three problems. These do not
include:
1) a predetermined site, investigate alternative uses.
2) a predetermined use, investigate alternative sites.
3) predetermined funds, investigate alternative investment opportunities.
4) predetermined objectives, investigate alternative environments.
Graaskamp has argued that real estate feasibility analysis divides conveniently into three problems. These are :-
i) A use or user in search of a site,
ii) a site in search of a use or user, and
iii) an investor in search of an opportunity.
These problems do not include predetermined objectives, investigate alternative environments.
Therefore, no. (4) is the correct option.
Graaskamp has argued that real estate feasibility analysis divides conveniently into three problems. These do not...
Name Real Estate Valuation Problems 1. If an investor has found a possible investment property with the net income after all operating expenses but before capital recapture from a small apartment house is estimated to be $48,000 per year: How much would an investor be willing to pay for the property if first mortgages are available for 75% the purchase price at 5.5% interest and the investor's equity capital investment requires a 15% return. The remaining life of the buildings...
A real-estate investor has the opportunity to purchase a small apartment complex. The apartment complex costs $4 million and is expected to generate net revenue (net after all operating and finance costs) of $60,000 per month. Of course, the revenue could vary because the occupancy rate is uncertain. Considering the uncertainty, the revenue could vary from a low of -$10,000 to a high of $100,000 per month. Assume that the investor’s objective is to maximize the value of the investment at the end of...
Please write neatly. DO NOT USE EXCEL! Thank
you.
Question #4 (25 Points) Three alternatives are being considered. The table below shows the associated cash flows with each alternative The company uses MARR of 20% per year Alternative A $40,000 $38,000 $25,000 $10,000 6 vears 26% Alternative BAlternative C Capital investment Annual Revenu Annual Cost Salvage value Useful life IRR $60,000 $53,000 $30,000 $10,000 6 years 3390 $30,000 $28,000 $16,000 $10,000 6 vears 35% Using incremental analysis, determine which is...
2. (20 points) A bank has been receiving complaints from real estate agents that their customers have been waiting too long for mortgage confirmations. The bank prides itself on its mortgage application process and decides to investigate the claims. The bank manager takes a random sample of 20 customers whose mortgage applications have been processed in the last 6 months and finds the following wait times (in days) 5.7, 22, 4, 12, 9, 9, 14, 3, 6, 5, 15, 10,...
A real estate investor has the opportunity to purchase land currently zoned residential. If the county board approves a request to rezone the property as commercial within the next year, the investor will be able to lease the land to a large discount firm that wants to open a new store on the property. However, if the zoning change is not approved, the investor will have to sell the property at a loss. Profits (in thousands of dollars) are shown...
Real estate expert Mike Aubrey is a strategist! His objective is always to sell the house. He believes that ineffective sellers need a “reality check” or to realistically assess their situations. The purpose of this assignment is to identify/apply strategic concepts discussed in this class within the show’s context. The assigned episode is no longer available online, so it is summarized below. (If you are interested in viewing current episodes, click on the following link: http://www.hgtv.com/hgtv176/videos/index.html .) The following scenario...
A real estate investor has the opportunity to purchase land currently zoned as residential. If the county board approves a request to rezone the property as commercial within the next year, the investor will be able to lease the land to a large discount firm that wants to open a new store on the property. However, if the zoning change is not approved, the investor will have to sell the property at a loss. Profits (in thousands of dollars) are...
Problem 4-21 (Algorithmic) A real estate investor has the opportunity to purchase land currently zoned residential. If the county board approves a request to rezone the property as commercial within the next year, the investor will be able to lease the land to a large discount firm that wants to open a new store on the property. However, if the zoning change is not approved, the investor will have to sell the property at a loss. Profits (in thousands of...
PART FIVE Case Problem 1. Byron Bass is a commercial real estate broker who also has a keen eye for personal investment opportunities. He has an opportunity to buy Academic Arms, an apartment building that caters to students. He estimates that he can acquire the asset for $1.3 million with purchase costs of 2 percent and that the seller will take back a $1.2 million first mortgage note with the annual debt service and principal payments reflected on the following...
Formula to analyze legal problems Style to answer essay questions Think creatively - ”There are no answers only arguments.” Demonstrate in your answer you can use what you know. 1. FACTS ---- Establish the important facts which will lead you to…. 2. RULE ---- What is the law governing this issue? Besure to state this to show you have learned something! 3. ANALYSIS ---- How does the rule apply to these unique facts? This shows that you leaned something and...