theory and practice: Real Estate Practice : Lesson 3865 - 12/15/14 01:12 AM

A broker decided to sell a lot he owned, which was 60 feet by 120 feet, for the price of 10 dollars per square foot.
The purchaser would assume a paving lien of 25 dollars per front foot.
What price would the purchaser have to ask for the lot if he wanted to sell it at a profit of 1500 dollars and give a clear title to the lot ?
The answer is below the wildlife photo. Please take your time.

 
A. $10,200
Let's multiply 60 times 120 to get a total of 720 square feet of lot.
(2 comments)

theory and practice: Real Estate Practice : Lesson 3864 - 12/15/14 01:10 AM

The market value of a property is 600 thousand dollars.
It's assessed for property taxes at 60% of it's market value.
The property is taxed at the rate of 55 mills on the assessed value.
What is the annual property tax paid for this assessment ?
The answer is poated below the wildlife photo. Please take your time.

A. $19,800
Let's first find the assessed value by multiplying 60% 0r .6 times 600k and we get 360 thousand dollars.
Next multiply the millage rate of 55 or .055 times the assessed value and we get $19,800 dollars in property … (0 comments)

theory and practice: Real Estate Practice : Lesson 3862 - 12/15/14 01:07 AM

A man bought a farm for 880 thousand dollars and sold it for one million dollars. The expenses he incurred from the sale of the farm were 10 thousand dollars.
His profit was what percent of his cost ?
Take your time. The answer is below the wildlife photo.

A. 12.5%
Let's first subtract 880 thousand from one million to find a profit of 120 thousand dollars.
Subtract the expenses of 10 thousand dollars from the profit of 120 thousand to get a net profit of 110 thousand dollars.
Now divide 110 tousand dollars by 880 thousand dollars and we see … (0 comments)

theory and practice: Real Estate Practice : Lesson 3860 - 12/15/14 01:01 AM

A man took out a loan for $1500 at the loan rate 5.5% or 5 1/2% per annum.
If he paid back the loan with 25 dollars in interest how long did he keep the money before he paid it back ?
The answer is below the wildlife photo. Take your time.

A. Four Months
Let's first find out what the annual interest is on 1500 dollars at 5.5% by multiplying .055 times 1500, and we get $82.50 .
Divide $25 into $82.50 and we get .333, or one third of a year, which is equal to four months.
(0 comments)

theory and practice: Real Estate Practice : Lesson 3859 - 12/15/14 01:00 AM
 
If a property is assessed at $140,000 and the tax rate is $21 per $1000 of assessed value, how much will the owner be liable in taxes ?
Answers posted below the wildlife photo. Take your time.

A. $2940
Divide 140,000 by 1000 to get 140.
Next, multiply $21 times 140 and we get $2940 in property taxes due.
(0 comments)

theory and practice: Real Estate Practice : Lesson 3858 - 12/15/14 12:58 AM

Here's an easy one for you.
A real estate salesman receives a 5% commission for selling a house for $160,800.
How much does the salesman receive, and how much will the owner receive after the salesman is paid ?
Answers below the wildlife picture. Take your time.

A. The salesman will receive $8400 and the owner will receive $159,600.
To get the salesman's commission let's multply 5% or .05 times $168,000 to get a total of $8400.
To find out what the owner gets subtract the $8400 commission from the sale price of the home and we get $159,600.
(0 comments)

theory and practice: Real Estate Practice : Lesson 3857 - 12/15/14 12:36 AM

An investor receives $525 at the end of 6 months as a return on money invested at 6% per year.
How much money has he invested ?
Answers posted below the wildlife pictures. Take your time.

A. $17,500
If $525 represents six months return, $1050 would represent an annual return at 6%.
Divide 6% or .06 into $1050 and we get $17,500 for the total amount invested.
(0 comments)

theory and practice: Real Estate Practice : Lesson 3856 - 12/15/14 12:12 AM

A man borrows money for six months at 6% annual interest rate payable in advance.
How much does he have to borrow in order to have 1000 dollars in cash immediately ?
Answers and solution posted below the wildlife photo. Take your time.

A. $1031.915 or $1031.92 rounded
This is similar to a commission problem.
If he needs 1000 dollars right away let's find out what the interest is on 1000 dollars at 6% apr for six months in advance.
100% - 6% = 94% or .94
Divide .94 into 1000 and we get 1063.8297 or 1063.83 rounded.
Subtract 1000 … (0 comments)

theory and practice: Real Estate Practice : Lesson 3855 - 12/08/14 12:31 PM

A man borrows 100 thousand dollars at 5% per annum.
What is the amount he will repay in nine months ?

A. $103,750 dollars
Multiply 100k times the annual interest rate of 5% or .05 and we get 5000 dollars.
Let's now divide 5000 by 12 months and we get $416.66.
Multiply $416.6666 times 9 months and we now have $3750.
Let's add the 3750 to 100k and we get $103,750.
(0 comments)

theory and practice: Real Estate Practice : Lesson 3854 - 12/08/14 12:30 PM

A buyer has an opportunity to purchase a lot for 10,000 dollars and a guaranteed within a year for 12,000 dollars.
He also has an opportunity to lend 10,000 dollars to an individual who will repay the loan within a year at 10% interest.
What is the better deal and by how much ?
The answers are below the wildlife photo. Please take your time.

A. The lot is the better deal by 1000 dollars.
Let's multiply the loan by 10% to find and interest of 1000 dollars, and when added to the principal we get 11000 dollars.
Subtract … (0 comments)

theory and practice: Real Estate Practice : Lesson 3853 - 12/08/14 12:28 PM

The taxes on a home were $1260 and were due on January first and to be paid by the owner.
How much of a credit would the owner get if he sold his home and the taxes were prorated from September 15th ?
Answers are below the wildlife photo. Take your time.

A. $367.50
January 1st to September 15th is equal to 8.5 months. Therefore, 12 - 8.5 = 3.5 months refund due.
$1260 divided by 12 equals $105 and $105 times 3.5 months equals $367.50, which is the amount due the seller.
(5 comments)

theory and practice: Real Estate Practice : Lesson 3852 - 12/08/14 12:27 PM

A salesman brings in a listing on a 500 thousand dollar home and will receive 15% of the total 5% commission from the sale of the home.
If another salesman is involved in the sale and sells the house and the 15% is deducted from his half of the commission, how much will he receive from the sale of the home ?

A. $8750
Let's first find out what the commission is on 500,000 dollars by multiplying 5% or .05 times 550k, and we get 25,000 dollars.
Let's now multiply 25k times 15% or .15 of the total to … (0 comments)

theory and practice: Real Estate Practice : Lesson 3851 - 12/08/14 12:25 PM

A property manager receives half of the first month's rent when he leases an apartment and an additional 5% of each month's rent thereafter for collecting the rent of 850 dollars a month.
How much is his total commission after 18 months ?

 
A. $1147.50
The first month is 850 divided by two which equals 425 dollars for the first month.
The next seventeen months are 5% of 850 times 17
5% of 850 is $42.50 and 17 times $42.50 is $722.50.
$722.50 plus $425 equals $1147.50
(0 comments)

theory and practice: Real Estate Practice : Lesson 3850 - 12/08/14 11:50 AM

The assessed value of all of the commercial property in the township of Elvis is 120 million dollars and the annual city budget is 6 million dollars. The township uses a percentage, which is the ratio of the assessed value of all of the town's commercial property to the town's budget, for taxing the assessed value of each parcel of commercial property.
If your commercial property is assessed at 400 thousand dollars how much property tax would you pay based on the formula for taxation above if the individual property assessment is divided by the ratio of assessed value of all of the town's … (0 comments)

theory and practice: Real Estate Practice : Lesson 3849 - 12/08/14 11:49 AM

A salesman presents a listing on a parcel of land for 50 thousand dollars will only receive 10% of the totlal commission of 5% on the sale of the land.
If a second sales agent sells the parcel of land and his brokerage is to receive half of the total commission from the sale, and ten percent is deducted from his half of the total commission, how much would the second salesman receive ?
Answers below the wildlife pic. Have fun with the problems and please email if you have a problem or see that a correction is needed. Remember to … (0 comments)

theory and practice: Real Estate Practice : Lesson 3848 - 12/08/14 11:38 AM

There is a balance of $120,000 due on a real estate contract that requires monthly payments of $1200, plus interest at 5% per annum, which is payable monthly.
What would be the total monthly payments for the first month, the second month, the third month, the fourth month and the fifth month ?
This one's not for the squeamish. If you have to peek at the answer below the wildlife, well, nobody's looking. :-)

 
A.  1st month is 1700 dollars. 2nd month is 1695 dollars, 3rd month is 1690 dollars, 4th  month is 1685 dollars and the 5th month … (0 comments)

theory and practice: Real Estate Practice : Lesson 3847 - 12/08/14 11:36 AM
                                                 
Donnie Herzog, a salesman, is working on a fifty-fifty split commission with his employing broker,Jack Belz. Herzog sells a 300 acre farm at $1005 (one thousand and five dollars) an acre. The way the commission schedule is set up it will call for a 5% commission on the first $150,000, 3.5% on the next $100,000, and 2% commission on the balance. Herzog also has to pay another salesman, Sidney Brodofsky, who listed the property, 10% of his share of the commission.

After all is said and done and everybody's been paid, how much will Herzog net?
Remember, the answers are below … (0 comments)

theory and practice: Real Estate Practice : Lesson 3846 - 12/08/14 11:35 AM
                              
A loan was made on a property which is 65% of it's appraised value. If the interest rate on the loan is 5% AND THE FIRST SEMI-ANNUAL INTEREST RATE  is $1675.00, what is the appraised value of the property ?
The answers, along with the corresponding solution, will be posted below the photographs at the bottom of the page, so spend a little time on it before you make your way to the bottom. It helps to keep your math skills sharp. Hope you have a fine week ahead.

A. 103,076.92
Let's first take the first semi-annual payment … (0 comments)

theory and practice: Real Estate Practice : Lesson 3845 - 12/01/14 03:47 AM

$25,000 is 5% of what amount ?
Put that grade school math to work here ?
The answers, along with the corresponding solution, will be posted below the photographs at the bottom of the page, so spend a little time on it before you make your way to the bottom. It helps to keep your math skills sharp. Hope you have a fine week ahead.

A. $500,000 Dollars
Let's divide.
Try 25000 divided by .05 (5%) and you get 500,000. If one hundreth of 500,000 is 5000, then 5 hundreths of 500,000 would be 25000. If you multiply 500,000 times … (6 comments)

theory and practice: Real Estate Practice : Lesson 3844 - 12/01/14 03:46 AM

What is the annual interest rate on a 12,000 loan when the interest payments are 960 dollars semi-annually on the full amount of the loan ?
The answers, along with the corresponding solution, will be posted below the photographs at the bottom of the page, so spend a little time on it before you make your way to the bottom. It helps to keep your math skills sharp. Hope you have a fine week ahead.

A. 16% or .16
First, multiply 960 times two to derive the total annual amount of the semi-annual payments, and we get the sum of 1920.
(2 comments)

 

All real estate fraud-related articles and Department of Justice Press Releases published here are taken from the public record, which normally include press releases and court documents related to each entry and case.
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