1. Which of these is not typically a supervisory responsibility of an apartment property manager?

• Marketing of the Property
• Preparing a maintenance schedule for landscaping
• Rent Collections
• Crafting and posting government tenant laws for the property.

2. For office, retail properties at what stage should a developer begin leasing efforts?

• Leasing efforts should begin once the certificate of occupancy is obtained.
• Leasing efforts should begin before the completion of the design stage.
• Leasing efforts should begin once the building is open so they can walk tenants and lender through the space.
• Leasing efforts should begin once the lender funds its loan.

3. With respect to complying with government landlord-tenant laws, is it easier to manage an apartment complex or an office building? Explain.

• Apartments, because there are rights protecting the residents in an apartment building and thats good for residents.
• Office, because they could be sued if they did not follow the state legislation on occupancy and housing.
• Apartments, because the residents never read the lease and they just sign it.
• Office, because the courts follow the terms in the lease because both parties are viewed busy savvy.

4. what costs should be included in your Investment Basis then what is this Basis compared against?

• All financial costs and that's compared against the value of the land.
• A renovation project should be undertaken if Investment Value exceeds Market Value and this is because the property is certainly worth more after renovation.
• Costs are compared against what the property is worth today not what it is worth in the future.
• These costs include materials, labor, contractors profit, architects fees, and an allowance for contingencies. These costs and the purchase price known as Investment Basis are then compared to future market value to determine if NPV>0.

5. what methods would a developer use to reduce the risks of the permitting process.

• The developer would write a check to the approval office to pay for issuing the permits to accelerate the approval process.
• The developer may offer provisions for creating green areas like trees surrounding land from the proposed project or adding a park.
• The developer should be prepared to negotiate with the lenders.
• Lower the purchase price to increase the equity leveraged IRR so its above 20%.

6. Which example below is a site in search of a use?

• Acumen Hospital is looking for a new out patient center.
• Microsoft needs a new corporate headquarters in California
• Chick Fil is looking for a site for a ground lease
• An area like Philadelphia around the airport that is growing because of additional air traffic for UPS, FedEx and passenger travel

7. what factors can change after renovation of a property to produce a higher after market value than before market value?

• The renovation of a property can result in a larger net operating income, an extension of the buildings remaining economic life, or a reduction in capitalization rate or reduction in the discount rate used to calculate the present value of future income.
• The renovation of a property results in more residents wanting to rent the property and that results in higher investment value.
• The renovation of a property will certainly result in a greater demand for renting at the property.

8. Explain why income property cash flow is not the same as taxable income. Check all the following that are true.

Check All That Apply

• Per the IRS, the owner often does make mortgage payments that include both interest and principal amortization. Per IRS code the principal portion is, therefore, a cash outflow that is tax deductible.
• Because Property Cash Flow reflects a deduction for income taxes.
• Because Taxable Income is the same as Property Tax Income
• A deduction for depreciation is allowed in the calculation of taxable income from annual operations; however, the owner does not write a check for depreciation on an annual basis. This reduces taxable income relative to the actual cash flow.

9. What must a local government review prior to issuing permits? Which statement is true?

• Land use, zoning, regional impact, site plan, environmental and water management
• Market to make sure property is feasible then if permit fees were paid to government then land use, zoning, regional impact, site plan, environmental and water management
• Demographics, transportation, economics
• Poltical contributions to staff and community in order to avoid any opposition to the project.