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27 Cards in this Set
- Front
- Back
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math conversion factors
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1 foot = 12 inches
1 yard = 3 feet 1 mile = 5,280 feet 1 sq. yard = 9 sq. feet (3 ft x 3 ft) 1 acre = 43,560 sq. feet A section = 1 sq. mile or 640 acres A Section = 5,280 ft. on each side 1 cubic yard = 27 cubic feet (3 ft x 3 ft x 3 ft) |
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area
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the amount of space on a flat surface. calculating the area means figuring out how large a flat space is.
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volume
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is the measurement of what it takes to fill up something, e.g., warehouse
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calculating the area of a square or rectangle is the same
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length (l) x width (w) = area (a)
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front footage
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is tyically referred to the width of the property that runs along the street
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area of a triangle
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sometimes called the gable end, the formula for a triangle is
1/2 base (b) x height (h) = area (a) |
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area of a circle
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diameter is the straight line drawn thru the center of the circle, the radius is the half of the diameter
n x radius squared (r2) to square the radius you multiply the radius by itself |
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volume of anything
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the formula for calculatig the volume of any figures involves taking the area and multiplying it by the height.
length (l) x width (w) x height (h) = volume (v) |
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converting
franctions to percent |
simply divid the top number by the bottom number
1/2 - 1/2 = .50 3/8 - 3/8 = .375 9/16 - 9/16 = 0.5625 |
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figuring out commissions
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to figure out what commission would be for:
sale price x commission rate - commission earned ($200k x .05 = $10k) to figure out what the commission rate is commission earned / sale price = commission rate ($10k/$200k = 0.05%) |
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broker / broker splits
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typically 50/50 split and then sales person receives 40% of listing broker -
broker commission x sales persons rate = sales persons commission $15k x .40 = $6k |
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net sell commission
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when a seller is asking you to ensure they receive a certain dollar amount, you need to figure out what your commission (6%) by dividing the desired sell amount by the remaining (94%) and then add that to the asking price for the house.
e.g. seller wants $200k, my commision is 6% $200,000 / .94% = $212,766 is what needs to be asked for |
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net selling commission formula
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net to seller / 100% of commission rate = selling price
(remember the 100% is the difference between my 6% and the 100% which is 94%) commission amount is dollars / commissioin rate = selling price |
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calculating interest on an amortized loan
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remeber each payment the total amount owed on the interest changes because of the previous months payment - remember to divide the payments moving forward by 12..
monthly payment - monthly principle = loan balance subtract last month principle payment from total loan balance divid by 12, next payment do the same |
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figuring total interest on lifetime mortgage
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dont' do it by the percentage, instead
monthly payment x 12 x 30 years = total payments over 30 years take total payment over 30 years - original loan amount = total interest paid e.g. $1330 (monthly) x 12 months x 30 years = $487,800 $487,800- $200,000 (orig. loan) = $278,800 total interest paid |
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assessed value of property
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is not what the market value is, it's what the town taxes on the value. example of 60% on $200k house is done
$200,000 x .06 = $120,000 to figure out the ratio $120,000 / $200,000 = .06 or to figure out the market value $120,000 / .06 = $200,000 |
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mills formula (tenths of a penny)- real estate taxes
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if the town rate is 24 mills.,
assessed value x millage = taxes owed $30,000 x .024 = $720 |
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taxes per hundreds - real estate taxes
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if the tax rate is $2.40 on the 100
assessed value x tax rate / $100 = taxes owed $30,000 x $2.40 / $100 = $720 |
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taxes per thousand - real estate taxes
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if the tax rate is $24 on the 1000
***** value x tax rate / $1000 = axes owed $30,000 x $24 / $1000 = $720 |
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proration
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is the allocation or dividing of certain money items at the closing (the person who uses it needs to pay for it)
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paying in arrears
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pays after the fact, e.g. paying for real estate taxes paid for by a seller at the beginning of the year, buyer pays the taxes in arrears
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figuring out the appreciation of a homes value
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new value - old value = change in value
change in value / old value = % of change $250,000 - $200,000 = $50,000 $50,000 / $200,000 = .25 |
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your house sold for $300k which was 75% for what it was purchased for
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sold price /percentage = price original purchase
$300,000 x .75 = $225,000 |
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figuring out depreciation values on investment properties
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you are currently allowed to depreciate investment property over 29.5 years -
cost of property / cost recovery period = annual depreciation $250,000 / 29.5 = $8474.58 annual deduction |
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to figure out the % rate for commercial property over 39 years
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is figured
1 / 39 = .0256 or 2.56 |
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capitalization - estimates a property's value on it's income
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I - income or net operating income
R - rate of return or capitalization rate V - value or sale price e.g. building w/income rate of $30,000 w/cap rate of 10% v = 30,000 / .10 = $300,000 or variations of the above |
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gross rent multiplier - used for small investment type properties
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value = rent x gross rent multiplier
GRM = sales prices / rent rent = sales price / GRM |
