Module 9 - Financial Sheet Test

The expense percentage for Self Storage should be calculated between 35% and 40%. This range is represented by the answer options: 35-40%, 35 to 40, 35%-40%, 35-40, and 35 - 40%.

Apartments should be calculated at an expense percentage between 50-70%. This range is represented by all the given options: 50-70%, 50 to 70, 50%-70%, 50-70, and 50 - 70%.

The correct answer is 70-75%, 70-75, 70%-75%, 70 to 75, 70 - 75%.

The expense percentage for Mobile Home Parks should be calculated between 35-40%. This means that the expenses incurred by Mobile Home Parks should ideally be within this range of percentages.

When filling out the financial sheet, it is necessary to customize the income and expense fields to be congruent with the Profit and Loss (P&L) statement for that specific property. This means that the income and expense categories on the financial sheet should match the corresponding categories on the P&L statement in order to accurately track the financial performance of the property.

The correct answer for this question is "8 cap, 8%, 8 or above, 8+ cap, 8% cap". This answer suggests that the property should have a cap rate of 8 or above in order to be submitted. The cap rate is a measure of the property's profitability and is calculated by dividing the net operating income by the property's value. A higher cap rate indicates a higher return on investment, so a cap rate of 8 or above would be desirable for submission.

A good cash on cash return percentage is typically between 10% to 15%. This means that for every dollar invested, the investor can expect to receive a return of 10% to 15%. This range is considered favorable as it indicates a relatively high return on investment, which is desirable for investors.

The administrative/payroll expenses should go under the "Salaries & Benefits" column on the financial sheet. This column is specifically designated for recording the expenses related to employee salaries and benefits, which includes the administrative and payroll costs.

Using the broker brochure financials for the P&Ls is not fine. This suggests that there may be some issues or inaccuracies with the information provided in the broker brochure financials, making them unreliable or unsuitable for use in analyzing the P&Ls. It is important to use accurate and trustworthy financial information when analyzing P&Ls to make informed decisions.

The statement suggests that if the insurance or tax amounts for the current year are not available, it is acceptable to use the amounts from the previous year. This implies that there is flexibility in using previous year's data as a substitute when the current year's data is missing. Therefore, the correct answer is True.

The main reason the expense percentage for apartments would be at 70% is when the complex is paying for the utilities. This means that a significant portion of the expenses is being used to cover the costs of utilities such as electricity, water, and gas. This can result in a higher overall expense percentage for the apartments as compared to other factors such as the owner's personal expenses or mismanagement of property finances.

It is important to get the P&L broken down by month in order to see trends and understand the history behind the asset. By analyzing the P&L on a monthly basis, one can identify patterns and fluctuations in revenue and expenses, which can help in making informed decisions and planning for the future. Additionally, breaking down the P&L by month allows the new owner to determine what expenses they will be responsible for, providing a clearer picture of the financial obligations associated with the asset.