busi 331 session 3 outline - ubc sauder school of …real estate division 1 busi 331 session 3...

REAL ESTATE DIVISION

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BUSI 331 Session 3 Outline

•BUSI 331 Exam Format and Overview

•Preparing to Write the BUSI 331 Final

•Review

REVIEW

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The BUSI final exam is 3 hours in length

and worth 50% of your course grade.

All Chapters are testable: including the

Read Only Chapters

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Key Topics

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Key Topics

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Exam Example

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Cap Rate:Cap Rate:

GPRI $120,000GPRI $120,000

--vacancy vacancy 4,8004,800

EGI $115,200EGI $115,200

--expenses expenses 40,00040,000

NOI $ 75,200NOI $ 75,200

Cap rate $75,200/$1,000,000 = 7.52%Cap rate $75,200/$1,000,000 = 7.52%

Cap Rate

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Typical Question

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Typical

Question

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Typical

Question

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Typical Question

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Hints

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Turn to page 6.3 in the course workbook.

R&D Question Review

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Cash flow analysis 6.3(1)

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Debt service and taxes 6.3(2)

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Capital Gain 6.3(3)

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Sale price $945,500 minus 6% commission,

minus 45% * [50% of capital gain on land

($28,315) + building ($160,455) + CCA

recapture], minus $543,581 mortgage

principal =

$267,282 ATER

After Tax Equity Reversion

6.3(4)

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Present Value of Equity

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Before tax PV of Equity 6.3(5)

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