====== Important Real Estate Formulas (CA Exam) ======

===== Valuation & Appraisal =====
  * **Market Value (Income Approach)**
    * Value = NOI ÷ Cap Rate
    * Cap Rate = NOI ÷ Value
        *  //NOI: Net Operating Income//

  * **Gross Rent Multiplier (GRM)**
    * GRM = Sales Price ÷ Gross Rent
    * Value = Gross Rent × GRM

  * **Gross Income Multiplier (GIM)**
    * GIM = Sales Price ÷ Gross Income
    * Value = Gross Income × GIM

  * **Cost Approach**
    * Value = Land Value + Replacement Cost − Depreciation

  * **Improvement Value** = Property Value - Land Value 

  * **Net Income** = Market Value × Cap Rate

===== Financing =====
  * **Loan Amount**
    * Loan = Purchase Price − Down Payment

  * **Points**
    * 1 Point = 1% of the loan amount

  * **Down Payment**
    * Down Payment = Purchase Price × Down Payment %

  * **Loan-to-Value (LTV)**
    * LTV = Loan Amount ÷ Property Value

  * **Equity**
    * Equity = Market Value (or Sales Price) − Loan Balance
        * //Alternatively,// Equity = Market Value - Debt

===== Income & Investment =====
  * **Net Operating Income (NOI)**
    * NOI = Gross Income − Operating Expenses

  * **Cash Flow**
    * Cash Flow = NOI − Debt Service

  * **Rate of Return (basic)**
    * Rate of Return = Annual Income ÷ Investment

===== Amortization =====
  * **Monthly Interest**
    * Interest = Loan Balance × Periodic Interest Rate

  * **Principal Payment**
    * Principal = Monthly Payment − Interest

  * **New Loan Balance**
    * New Balance = Old Balance − Principal Paid

===== Brokerage & Commissions =====
  * **Commission**
    * Commission = Sales Price × Commission Rate

  * **Broker Gross Income**
    * Gross Income = Total Commissions Earned (before expenses)

====== Unit Conversions ======

===== Length =====

^ Conversion ^ Equivalent ^
| 12 inches (in) | 1 foot (ft) |
| 3 feet (ft) | 1 yard (yd) |
| 5,280 feet (ft) | 1 mile (mi) |
| 1 mile (mi) | 1,760 yards (yd) |
| 1 mile (mi) | 63,360 inches (in) |

===== Area =====

^ Conversion ^ Equivalent ^
| 1 square foot (sq ft) | 144 square inches (sq in) |
| 1 square yard (sq yd) | 9 square feet (sq ft) |
| 1 square rod | 272.25 square feet (sq ft) |
| 1 acre | 43,560 square feet (sq ft) |
| 1 acre | 4,840 square yards (sq yd) |
| 1 acre | 160 square rods |
| 1 section | 640 acres |
| 1 township | 36 sections |
| 1 square mile (sq mi) | 640 acres |
| 1 hectare (ha) | ~2.471 acres |
| 1 acre | ~0.4047 hectares (ha) |

===== Volume =====

^ Conversion ^ Equivalent ^
| 1 cubic foot (cu ft) | 7.48 gallons |
| 1 gallon | 4 quarts |
| 1 quart | 2 pints |
| 1 pint | 2 cups |
| 1 cup | 8 fluid ounces (fl oz) |

===== Quick Formulas =====

  * Square / Rectangle Area: length × width
  * Triangle Area: (base × height) ÷ 2
  * Circle Area: π × r²
  * Circle Circumference: 2πr

===== Memorize These =====

  * 1 acre = 43,560 sq ft
  * 1 mile = 5,280 ft
  * 1 section = 640 acres
  * 1 hectare ≈ 2.471 acres

===== Exam Tip =====
  * If it says **no payments made** → loan balance is unchanged
  * If it says **gross** → ignore expenses
  * If it says **net** → subtract operating expenses
  * Cap rate problems always revolve around **NOI**