Commercial Training Final (Do Not Copy or Distribute: Copy write Protected)

  1. Name 4 property types of commercial real estate and lending that you can specialize in?
  1. Name the two major things that a General Brokerage does in Commercial Real Estate?
  1. In development there are different ways that an agent can make money, name 2 of those ways?
  1. Name 4 tools that a commercial professional must have?
  1. When marketing for leads name 6 other professions (Friends in Big Places) that can refer you leads?
  1. For offices name 5 of the major needs of an office user?
  1. Name 3 of the 4 major types of offices?
  1. When dealing with offices what is the largest type of office?
  1. For Retail clients what are 5 of the major needs of a retail client?
  1. Name 3 of the 4 classifications of Commercial Projects?
  1. Name 3 major companies that normally would look for a Freestanding Retail Building?
  1. When Dealing with Commercial Real Estate and Lending Demographics are very important to look at name 5 Demographic categories that are important in commercial real estate, especially for retail?
  1. Name a type of commercial use that would be considered a special-use property?
  1. Name 5 major needs of Multifamily Property Client needs?
  1. Name 2 different types of clients that you can work with?
  1. What are 5 of the first questions that you would ask a client when trying to understand them? (Other than small talk of course)
  1. Name 6 major elements of a commercial lease agreement?
  1. Briefly describe the difference between a net lease and a gross lease?
  1. Describe the difference in Usable Space and Gross-Up space in a lease?
  1. Please Calculate the net operating income (NOI):

Size: 50,000 sq ft, 90% occupancy, Rent is 2.50 per sq ft per month, Operating Expenses .50 and Operating Reserve .20

  1. Please Calculate the net operating income (NOI):

Size 40,000 sq ft, 90% occupancy, Rent is 25.00 sq ft per year, Operating expense is 30% of rent, Operating Residual is 10% of rent.

  1. What is the formula for Gross Rent Multipier and what is the advantages of disadvantages for uses this method.
  1. Please Calculate the GRM.

Sale price is 1,000,000 and the Gross Rent is 100,000, what is the GRM.

  1. What does CFBDAT stand for?
  1. Please calculate the Cash on Cash Return. Asking Price: 1,000,000, amount financed is 750,000, down payment is 250,000 and CBFDAT is 25,000.
  1. Name 5 things that you need to have or do when valuating land?
  1. What is AM/PM traffic and please give one example of what type of business benefits from each type of traffic?
  1. How do you normally calculate leasing commissions?
  1. In commercial financing what is Operating Performance?
  1. What is a Fee Agreement in Commercial Lending and who pays the fees in this agreement and what are the normal fees and why?
  1. When preparing a Loan Request what are 5 items that you need to collect?
  1. Name 4 different type of lenders?
  1. Name 3 types of loan products and what are they used for?
  1. Name 3 types of payment schedules that a client may be asked to pay?
  1. In a commercial full doc loan name 5 items that may need to be collected?
  1. Briefly Make a Timeline of 5 important events in a commercial loan in the order that it is done.
  1. There are 3 different phases in an Environmental inspection name and describe 2 of the 3.
  1. On a quote or term sheet from a lender, name 5 of the fees that could be charged to the client.
  1. Name 3 reasons a commercial broker for loans can be better than a single bank?
  1. Name 8 different marketing Activities that could help your business?
  1. Name 8 different prospecting Activities that could help your business?
  1. Name the 3 different methods of valuating property or appraising property and what each method looks for and how they work? (This will take a little time)(Please answer on back)
  1. Name the 4 main components of Development?
  1. Name 4 main members of any development team and describe the importance of each member.
  1. Name 5 majors items that a feasibility study will determine.
  1. Name 6 sources of money that can be used in development.
  1. Name 4 important items that a good tenant much have.
  1. Describe what a Business Climate is in development.
  1. (Bonus Question 1) Name 6 items in a cost pro forma for development.
  1. (Bonus Question 2) What is the formula for an Income Pro Forma?

ALTERNATIVE FINANCE QUESTIONS

1) Name the 3 Basic Types of Alternative Funding Products

2) Under normal circumstances, what is the lowest credit score permissible to receive a Merchant Cash Advance?

3)Under normal circumstances, what is the lowest credit score permissible to receive an Alternative Business Loan?

4) Under normal circumstances, what is the maximum term for repayment in Alternative Finance?

5) List the basic Supporting Documents required to be submitted for a Merchant to get a Merchant Cash Advance.

6) Name 3 different Prohibited Business Types in Alternative Funding.

7) What is the definition of a Merchant Cash Advance?

8)Does a Merchant need to accept Credit Cards to obtain an Alternative Business Loan?

9) How does a Merchant repay a Merchant or ACH Cash Advance or Alternative Business Loan?

10) If a Merchant has $25K in Credit Card Sales and Total Monthly Sales Revenue of $47K per month, can they get a Merchant Cash Advance in the amount of $70K? Explain your answer.