Build a strong foundation of knowledge of the real estate industry to achieve lasting success and wealth

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To master the core fundamentals of real estate systematically, one step at a time.

The financial categories and components of properties revenue and operating expenses.

The tricks of the trade, the knowledge the pros use, and what goes on in the back room.

How to substantially increase the value of the property.

The E=MC 2 equation of real estate. The Holy Grail!

How to uncover the “inside story” of a property allowing you to find opportunities overlooked by others.

And much, much more.



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Test Your Knowledge of Real Estate

1 / 20

Which of the following is the most important benefit of owning real estate?

2 / 20

The All Bills Paid (“ABP”) method usually saves the owner money since the utility accounts are opened in the tenants name and H-VAC is controlled by the owner.

3 / 20

If you are able to increase NOI by $5,000 a year, assuming a 5% cap rate you increased property value by:

4 / 20

If you can decrease an operating expense by $1 in a 4% cap rate market and also increase revenue by $1, property value will increase by:

5 / 20

A $10,000 increase in Total Operating Revenue or a $10,000 decrease in Total Operating Expenses has the same effect on NOI and property value.

6 / 20

The individual names of the operating expense accounts and categories generally depend upon the management agents computer program and chart of accounts

7 / 20

If inflated water and sewer costs due to leaks are not corrected, not only will you lose substantial cash flow but your NOI and property value will also be adversely affected.

8 / 20

It’s often better to reduce rents during slow leasing periods even though it will have a negative effect on net operating income and property value in the short run.

9 / 20

The lower the cap rate, the lower the value of the property. The higher the cap rate, the higher the value of the property.

10 / 20

Which of the following should not be considered other income?

11 / 20

A good rule of thumb to estimate total payroll expenses would be to add approximately 10% - 15% to the amount of the actual gross wages.

12 / 20

Which of the following has nothing to do with the size of a unit?

13 / 20

Which of the following is not considered rent?

14 / 20

As a general rule it’s ok to keep purchasing properties in the same entity since it reduces the cost of legal fees, bank fees, bookkeeping, etc.

15 / 20

Which of the following doesn’t contribute to market cap rate changes?

16 / 20

A property has an NOI of $250,000 and is selling for $6,500,000. Therefore, the property is selling at a 6.5% cap rate.

17 / 20

A Risk Fee is charged when a lease has expired and a tenant needs to stay longer but won’t renew their lease.

18 / 20

Tenants who cause damage to their units are liable only up to the amount of their security deposit.

19 / 20

Which of the following is generally not included on a rent roll?

20 / 20

The Letter of Intent (“LOI”) is a binding document that serves to set forth the basic terms and conditions upon which the buyer and seller will enter into a much more definitive document known as the Contract of Sale (“Contract”).

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