The capitalization rate is established by:<\/p>\n
The government<\/p>\n
Investors in commercial real estate, and their view of risk and return.<\/p>\n
Commercial real estate brokers<\/p>\n
Commercial lenders.<\/p>\n
5 points \u00a0\u00a0<\/p>\n
QUESTION 2<\/p>\n
The value of commercial real estate is based on:<\/p>\n
Cash flow.<\/p>\n
Whether the project is a limited service or a luxury property.<\/p>\n
How much the seller’s want to sell the project for.<\/p>\n
How much the project cost to build.<\/p>\n
5 points \u00a0\u00a0<\/p>\n
QUESTION 3<\/p>\n
Describe “Pre-opening Expenses”.<\/p>\n
For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).<\/p>\n
Paragraph<\/p>\n
Arial<\/p>\n
10pt<\/p>\n
P<\/p>\n
0 WORDSPOWERED BY TINY<\/p>\n
10 points \u00a0\u00a0<\/p>\n
QUESTION 4<\/p>\n
A hotel was valued at $7,500,000.\u00a0 It had produced annual cash flow last year of $300,000.\u00a0 What was the capitalization rate at the time this hotel was valued?<\/p>\n
Your answer should include no decimal points, no percentage sign.<\/p>\n
5 points \u00a0\u00a0<\/p>\n
QUESTION 5<\/p>\n
A hotel was valued at $12,000,000 two years ago.\u00a0 The cash flow of the hotel was increased by $100,000 this past year.\u00a0 The capitalization rate required by investors in commercial real estate currently is 7%.<\/p>\n
By how much did the value of the hotel increase last year?<\/p>\n
Your answer should include commas.<\/p>\n
5 points \u00a0\u00a0<\/p>\n
QUESTION 6<\/p>\n
Lenders will typically lend only up to 60-70% of a hotel project value.\u00a0 Why?<\/p>\n
For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac).<\/p>\n
Paragraph<\/p>\n
Arial<\/p>\n
10pt<\/p>\n
P<\/p>\n
0 WORDSPOWERED BY TINY<\/p>\n
10 points \u00a0\u00a0<\/p>\n
QUESTION 7<\/p>\n
A hotel owner wishes to sell his hotel.\u00a0 Currently, his hotel is producing cash flow of $120,000 annually.\u00a0 Commercial investors are currently requiring a 12% capitalization rate to invest in property of this type.<\/p>\n
How much is the hotel worth?<\/p>\n
Your answer should include commas.<\/p>\n
5 points \u00a0\u00a0<\/p>\n
QUESTION 8<\/p>\n
How can the value of a hotel be increased?<\/p>\n
Renovate the guest rooms.<\/p>\n
Produce greater cash flow.<\/p>\n
None of the above<\/p>\n
Change the franchise of the hotel<\/p>\n","protected":false},"excerpt":{"rendered":"
The capitalization rate is established by: The government Investors in commercial real estate, and their view of risk and return. Commercial real estate brokers Commercial lenders. 5 points \u00a0\u00a0 QUESTION 2 The value of commercial real estate is based on: Cash flow. Whether the project is a limited service or a luxury property. How much […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[10],"class_list":["post-78417","post","type-post","status-publish","format-standard","hentry","category-research-paper-writing","tag-writing"],"_links":{"self":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/78417","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/comments?post=78417"}],"version-history":[{"count":0,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/posts\/78417\/revisions"}],"wp:attachment":[{"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/media?parent=78417"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/categories?post=78417"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/papersspot.com\/blog\/wp-json\/wp\/v2\/tags?post=78417"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}