theory and practice: Real Estate Practice : Lesson 3939
- 02/08/15 10:49 PM
A commercial lot is rectangular and has a frontage of 760 feet and a depth of 500 feet.
How many acres does the lot contain ?
Please take your time. The solution posted below the wildlife photo.
A. 8.72 acres
760 ft
*
500 ft
=
380000 square feet
/
43560 square feet (number of square feet in an acre)
=
8.7236 acres or rounded 8.72
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theory and practice: Real Estate Practice : Lesson 3938
- 02/08/15 10:48 PM
What would a property be worth if the net return is $9500 per month and the yearly earning is 8% return on the investment ?
Please take your time. The solution is posted below the wildlife photograph.
A. $1,425,000
9500 monthly
*
12 months
=
114000 yearly
/
0.08 rate of return
=
$1,425,000 property value with 8% rate of return.
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theory and practice: Real Estate Practice : Lesson 3937
- 02/08/15 10:46 PM
In a twelve unit apartment building, three units rented for $1000 per month each, two of the units rented for $1250 each per month, and one of the units rented for $1500 per month.
The rest of the units, six of them, were efficiencies and rented for $650 per month.
What was the gross annual income ?
Please take your time. The solution is posted below the wildlife photograph.
A. $130,800 annual gross income
1000
*
3 units
=
3000
1250
*
2 units
=
2500
1500
*
1 units
=
1500
650
*
6 units
=
3900
3000
+
2500
+
1500
+
3900
=
10900 monthly
*
12 months
=
130800 annual gross income
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theory and practice: Real Estate Practice : Lesson 3936
- 02/08/15 10:43 PM
What is the area of a square-acre lot in terms of feet on each side ?
Take your time. the solution is posted below the wildlife photo.
A. 208.7 feet on each side
If there are 43,560 square feet in an acre take out your calculator and put 43,560 square feet (the number of square feet in an acre) into the number field , hit the square root funtion and get 208.71032557111303591192697393256 (extreme) or 208.7 feet per side.
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theory and practice: Real Estate Practice : Lesson 3935
- 02/01/15 04:56 PM
How many sections comprise a township ?
Please take your time. The solution is posted below the wildlife photo.
A. 36 sections
36 sections = 1 township (6 miles long and 6 miles wide) each section equals one square mile.
Remember that a township is part of a territorial subdivision.
I created the real estate practice and theory quiz to help you stay sharp. Check back each Monday morning for updates.
Have a terrific week ahead.
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theory and practice: Real Estate Practice : Lesson 3934
- 02/01/15 04:54 PM
How many acres are there in a township section ?
Please take your time. The solution is poste below the wildlife photo.
A. 640
640 Acres = 1 Section
Also remember that there are 36 sections in a township. A township is a territorial subdivision which is six miles long, six miles wide, contains thirty six sections with each section being one mile square.
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theory and practice: Real Estate Practice : Lesson 3933
- 02/01/15 04:52 PM
A buyer purchased a commercial lot 75 feet wide by 165 feet deep and later sold it for $1,935.00 per front foot.
What was the selling price of the commercial lot ?
Please take your time. The solution is below the wildlife photograph.
A. $145,125
The front footage is 75 feet so multiply 1935 times 75 to get the total selling price of the commercial lot which is $145,125.
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theory and practice: Real Estate Practice : Lesson 3932
- 02/01/15 04:51 PM
Armando Corea bought a square lot which was 10 thousand square feet.
He's going to build a house on it which is 45 feet squared and with an average height including the basement of 30 feet.
The costs are $250 per front foot for the land and $3.50 per cubic foot for the home.
What is the total cost for the home ?
Please take your time. The answer is posted below the wildlife photo.
A. $237,625
We know that 100 times 100 equal 10,000 square feet, so 100 feet would equal the front footage of the home, and … (0 comments)
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theory and practice: Real Estate Practice : Lesson 3931
- 02/01/15 04:50 PM
What would the quarterly interest be on a $600,000 loan which has an annual interest rate of 5.5% ?
Please take your time. The solution is below the royalty free wildlife photograph.
A. $8250
Multiply the annual interest rate of 5.5% times the loan amount of 600 thousand dollars and we find that the total annual interest is 33 thousand dollars.
Now divide 33 thousand dollars by 12 months and we find that one months interest is $2750.
We're looking for a quarterly interest payment, so 3 months equal one quarter of the year.
Multiply $2750 times 3 months … (0 comments)
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theory and practice: Real Estate Practice : Lesson 3930
- 02/01/15 04:48 PM
Compute the excavation cost for a cellar 25 feet wide , 30 feet long and 5 feet deep at a cost of $29.00 per cubic yard.
Please take your time. You'll find the solution below the wildlife photo at the bottom of the page.
A. $4027.78
Multiply 25 ft times 30 ft times 5 ft to derive a total of 3750 cubic feet.
Divide 3750 cu ft by 27 to derive the number of cubic yards, 139.88 cu yd
Now, multiply 138.888889 cu yds times our cost,$29 per cubic yard, and we see that the excavation cost is $4027.777781 or rounded $4027.78.
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theory and practice: Real Estate Practice : Lesson 3929
- 02/01/15 04:47 PM
A borrower has a principal balance on his mortgage of $600 thousand dollars.
His interest rate is 5.5% and his taxes and insurance total $10,800 annually.
His monthly payment is $6000 dollars.
What is the principal balance after he makes the first payment ?
Take your time. The solution is posted below the wildlife photo.
A. $597,650
Multiply the principal balance times the interest rate of 5.5% by multiplying 600 thousand times .05 and we see that we have a total annual interest of $33,000.
Now divide 33,000 by 12 months to get the one month interest total of … (0 comments)
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theory and practice: Real Estate Practice : Lesson 3928
- 02/01/15 04:45 PM
The net amount a seller received for his property, after the broker had deducted a sales commission of 5% and an allowance of 400 dollars for advertising, was $908,000.
What was the selling price of the house ?
Take your time. The solution is posted below the wildlife photograph.
A. $956210.53
Add the 400 dollars for the advertising to the amount the seller received to get a total of 908,400 and then divide that number by .95 (subtract the 5% commission rate from 100%) .
908400
/
0.95
=
956210.526316 or $956,210.53 rounded
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theory and practice: Real Estate Practice : Lesson 3927
- 02/01/15 04:43 PM
How many acres are there in a parcel of land 600 feet by 300 feet ?
Please take your time. The answers are posted below the wildlife photo.
A. 4.132231
Multiply 600 feet times 300 feet and we have a total of 180,000 square feet.
If one acre equals 43,560 square feet, divide 43,560 in 180,000 and we see that we have a total of 4.132231 acres (or rounded to 4.13).
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theory and practice: Real Estate Practice : Lesson 3926
- 02/01/15 04:41 PM
If sixteen acres of commercial land sell for $720,000, how much will 200 acres cost ?
Take your time. The answer is posted below the wildlife photograph.
A. 9 million dollars
Divide 720 thousand by sixteen to get the price per commercial acre sold.
The answer is 45 thousand dollars per acre.
Multiply 45 thousand times 200 and we see that 200 acres of commercial land will cost 9 million dollars.
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theory and practice: Real Estate Practice : Lesson 3925
- 01/25/15 05:21 PM
If you bought a house for the listing price less 20% and sold it for the listing price, what percent of profit would you make ?
Take your time. The answer is posted below the wildlife photo.
A. 25%
Here's an example for you.
Let's say we bought the home with a listing price of 500 thousand dollars for twenty percent less than the listing price.
That would amount to a selling price of 400 thousand dollars.
Let's subtract the original listing price of 500 k from the selling proce of 400 k and we see that the 20% less amounts … (0 comments)
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theory and practice: Real Estate Practice : Lesson 3924
- 01/25/15 05:19 PM
A piece of land 500 feet by 350 feet had a sidewalk laid around it by the owner.
The sidewalk encompassed the entire lot and a curb was placed along the lot lines.
The sidewalk cost $32,000 and the curb was $20 per lineal yard.
What was the total cost of the sidewalk including the curb ?
Please take your time. The answer is below the wildlife photo.
A. $43,333.33
Remember that we're looking for a linear yard (3 feet) and not a cubic yard.
First, find out what the total perimeter of the curb is by adding 500 plus … (0 comments)
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theory and practice: Real Estate Practice : Lesson 3923
- 01/25/15 05:17 PM
A builder / developer has 5.25 acres of land.
He wants to divide the land into lots 60 feet wide by 100 feet deep.
36,690 square feet of land is required for street construction
With all of the above considered, how many lots could be derived from the tract of land ?
Take your time. The answer is below the wildlife photo.
A. 32 lots
Multiply 43,560, the number of square feet in an acre, time 5.25 acres of land for a total of 228,690 square feet of land.
Subtract the necessary 36,690 square feet for the streets from … (0 comments)
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theory and practice: Real Estate Practice : Lesson 3922
- 01/25/15 05:15 PM
Arnold got his tax bill today and it was $4903.00.
The tax rate is 42 mills per dollar.
The property is assessed at 58.25% of it's value.
What is the actual value of Arnold's property ?
Take your time. The solution is below the wildlife photo.
A. $200,408.75
4903 tax bill
divided by
0.042 mills
=
116738.095238 assessed value of the property or 58.25% of it's value
divided by
0.5825 the assessed rate
=
200408.74719 or 200,408.75 rounded the actual value of the property.
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theory and practice: Real Estate Practice : Lesson 3921
- 01/25/15 05:14 PM
A landowner has 160 acres of land.
He sold 42.25 acres of the land to one man.
He also sold one third of the remaining land to another buyer.
How many acres were left ?
A. 78.5 Acres
Let's first subtract the 42.25 acres that were sold from the total number of acres owned by the seller and we have 117.5 acres left.
If the owner sold one third of the remaining acreage to another buyer multiply .3333 (one third) times 117.5 (the remaining acreage) to see that the buyer bought 39.246075 acres.
Subtract 39.246075 from 117.5 and we have 78.503925 acres … (0 comments)
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theory and practice: Real Estate Practice : Lesson 3920
- 01/25/15 05:12 PM
A seller has a tract of land which encompasses 108,900 square feet of land.
The selling price is $12,500 an acre.
How much is the seller asking for the tract of land ?
Take your time. The solution is posted below the wildlife photo ?
A. $31,250
There are 43,560 square feet in an acre.
Divide 108,900 by 43,560 and we get 2.5 acres.
Now multiply 2.5 times $12,500 and we get $31,250.
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