You will be evaluated by the comprehensiveness and clarity of your answers.
1. React: Prop 13. At 1% ad valorem, the tax appears to be an out sized discussion for such a small operational cost.
2. React: The most critical aspects of a lease for a shopping mall are the annual base rent and the pass-through of CAM charges.
3. React: The due diligence process for a property is a legal exercise and is not of much concern to the businesspeople making the investment. Don’t forget a breakdown of key aspects.
4. What is encumbered real estate? What does title clarify?
5. In a profitable transaction when you are selling a property, what is true about the going in and exit cap rates? Assume cash flow is the same throughout. Why?
6. React: Reducing a tenant’s monthly rent by $100 every month is a wise investment in landlord tenant relationships.
7. What’s a Cap rate? Be thorough in your discussion of all the inputs. How does this differ from Discounted Cash Flow analysis?
8. React: The financial pro forma for a property represents the financial performance which will be realized by the property, and as such reflects the risks of the investment.
9. What’s pre-leasing and why would I do it? Who are the players? Who benefits? Why?
