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FL Real Estate Broker Coarse I > Investment Real Estate > Flashcards

Flashcards in Investment Real Estate Deck (9)
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1
Q

What is assemblage?

A

Assemblage is the combining of more than one parcel.

2
Q

What is plottage?

A

Plottage is the increase in value after assemblage. 2+2=5

3
Q

What is a percentage lease?

A

AKA overage lease or percentage lease.

A minimum (base) rent is charged plus a percentage of the tenants gross sales over a predetermined threshold.

4
Q

What is a Net Lease

A

NNN - tenant is responsible for taxes, maintenance, and property insurance.

5
Q

What is an index lease?

A

Rent is based on some published index such as the consumer price index.

6
Q

What is a typical commercial real estate mortgage.

A

15 yr amoratized mtg with a 5 year balloon.

7
Q

What happen when a loan constant is great than the cap rate.

A

the equity Dividend rate is negatively affected.

8
Q

What is sensitivity analysis

A

When you change the underlying terms of a mortgage to make a property work financially.

9
Q

What is static risk?

A

Static risk is risks associated with storms, floods, theft, liability claims. Static risk can usually be covered by insurance.