important_formulas
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| important_formulas [2025/12/17 10:11] – created reidjs | important_formulas [2026/01/23 10:51] (current) – reidjs | ||
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| - | ====== Important Real Estate Formulas | + | ====== Important Real Estate Formulas (CA Exam) ====== |
| ===== Valuation & Appraisal ===== | ===== Valuation & Appraisal ===== | ||
| Line 5: | Line 5: | ||
| * Value = NOI ÷ Cap Rate | * Value = NOI ÷ Cap Rate | ||
| * Cap Rate = NOI ÷ Value | * Cap Rate = NOI ÷ Value | ||
| + | * //NOI: Net Operating Income// | ||
| * **Gross Rent Multiplier (GRM)** | * **Gross Rent Multiplier (GRM)** | ||
| Line 16: | Line 17: | ||
| * **Cost Approach** | * **Cost Approach** | ||
| * Value = Land Value + Replacement Cost − Depreciation | * Value = Land Value + Replacement Cost − Depreciation | ||
| + | |||
| + | * **Improvement Value** = Property Value - Land Value | ||
| + | |||
| + | * **Net Income** = Market Value × Cap Rate | ||
| ===== Financing ===== | ===== Financing ===== | ||
| * **Loan Amount** | * **Loan Amount** | ||
| * Loan = Purchase Price − Down Payment | * Loan = Purchase Price − Down Payment | ||
| + | |||
| + | * **Points** | ||
| + | * 1 Point = 1% of the loan amount | ||
| * **Down Payment** | * **Down Payment** | ||
| Line 29: | Line 37: | ||
| * **Equity** | * **Equity** | ||
| * Equity = Market Value (or Sales Price) − Loan Balance | * Equity = Market Value (or Sales Price) − Loan Balance | ||
| + | * // | ||
| ===== Income & Investment ===== | ===== Income & Investment ===== | ||
| Line 56: | Line 65: | ||
| * **Broker Gross Income** | * **Broker Gross Income** | ||
| * Gross Income = Total Commissions Earned (before expenses) | * 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: | ||
| + | |||
| + | ===== Memorize These ===== | ||
| + | |||
| + | * 1 acre = 43,560 sq ft | ||
| + | * 1 mile = 5,280 ft | ||
| + | * 1 section = 640 acres | ||
| + | * 1 hectare ≈ 2.471 acres | ||
| ===== Exam Tip ===== | ===== Exam Tip ===== | ||
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