Daniel Lloyd, Real Estate training (Issue Records)

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Rainmaker
861,990
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

Cap rate:
IRV is the formula.

I = net operating income
R = cap rate
V = value

A $500,000 property with $50,000 net operating income would have a 10 cap or 10% yield

50000 ÷ 10% = 500000
500000 × 10% = 50000

Math problems are not difficult for me as a rule. Capital appreciation kind of kicked my ass though when I was taking Advanced Financial Analysis!
🧠🎓🤔💪

Mar 25, 2019 05:32 PM
Rainmaker
5,570,348
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

sale price x commission rate = my income

Mar 25, 2019 03:14 PM
Rainmaker
1,821,226
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co. Notary Services, retired Realtor

The formula to calculate my commission Daniel Lloyd 

Mar 25, 2019 02:02 PM
Rainmaker
1,355,908
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Price x commission

Price x down payment

 

Very rarely Pythagorean theorem or the quadratic equation.  As with life in general, nothing beyond 3rd grade arithmetic.

Mar 25, 2019 04:56 PM
Rainmaker
1,649,749
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Property Manager

The complexity of the math depends on the area of real estate one specializes in.  Those working with commercial and investment properties have much more complex math to work with than typical residential sales agnet who  works with square footage, cost per square foot, or lot sizes.

Mar 25, 2019 04:39 PM
Rainer
126,928
Ken Jones
Kenneth J. Jones, Inc. - Rahway, NJ
Commercial Real Estate Broker & Appraiser

Daniel Lloyd This is a very interesting question.

It's particularly interesting because my business includes a vast amount of physcial and financial analyses. Consequently, it requires me to perform discounted cash-flow analyses (DCF), net present values (NPV), amortization calculations, future value estimates (FV), as well as developing and applying various types of rates, including capitalization rates (Ro), overall rates of return (OAR), among others.

As for problems with math. I've NEVER had a math problem I found to be difficult. Whether algebra (which is the foundation of financial math applications), geometry (which I commonly use in my land calculations and quarry mining appraisals), trigonometry (which I also use in land and quarry mining applications), or calculus (which is the basis of statistical analyses), or any other basic math.

I find math to be the foundation of logic. And, as a former professional musician, I also found that music is also largely based on mathematics.

Sorry. Didn't intend to get boring on one of my favorite topics.

Mar 25, 2019 02:24 PM
Ambassador
2,504,483
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

1.) Price per square foot is what I use most and net sheet

2.) There is no difficult math problem in real estate that I have encountered.

Mar 25, 2019 06:03 PM
Rainmaker
6,308,799
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

No problems. Use a financial calculator.

Mar 25, 2019 05:00 PM
Rainmaker
818,390
Peter Mohylsky. Broker Associate
Miramar Beach - Santa Rosa Beach, FL
THE BEACH IS OPEN AND WAITING FOR YOU

figuring out my commission split

Mar 25, 2019 04:32 PM
Rainmaker
860,429
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

No advanced math needed for what I do.

Mar 25, 2019 03:48 PM
Rainmaker
3,853,069
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

1. I use no formulas. I use 3rd and 4th grade math; add, subtract, multiply and divide.

2. None of this is difficult for me. It's grade school math.

Mar 25, 2019 02:54 PM
Rainmaker
343,779
Joseph Domino 480-390-6011
HomeSmart - Scottsdale, AZ
Real Estate Made Easy

Purchase Price X .03

Mar 25, 2019 02:12 PM
Ambassador
4,040,963
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
The right Charlotte REALTOR!

Price per square foot, adjustments on CMAs, estimated taxes that will be owed at Closing - all simple addition, subtraction, multiplication, division that can easily be done either in my head or with the calculator on my phone - easy-peasy!

Mar 25, 2019 09:38 PM
Ambassador
945,807
Frank Rubi
Frank Rubi Real Estate, LLC - Metairie, LA
FrankRubiRealEstate.com

Basic math is all that is needed in this business

 

Mar 25, 2019 05:17 PM
Rainmaker
1,162,717
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast
  1. Cap Rate
  2. The shrinking Commission %
Mar 25, 2019 04:45 PM
Rainmaker
766,149
Chuck Willman UtahHomes.me
Utah Homes - Alpine, UT
Utah Homes

Everyone beat me to it- the commission.

I also tend to want to know cost per square foot.

Mar 25, 2019 03:38 PM
Rainmaker
2,604,216
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

43,560 is very important and comes up often and requires math

Mar 25, 2019 03:09 PM
Ambassador
5,165,268
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

We use dozens of formulas for sampling and statistics.

Mar 25, 2019 02:51 PM
Rainmaker
468,099
Dan Pittsenbarger
Keller Williams Western Realty - Bellingham, WA
Improving Conditions

I use CAP Rate the most. The most challenging to calculate is one I can't even remember the name of but it goes into not only including net income and price but depreciation of the property (taxes), projected rent increases/decreases, projected maintenance costs, loan performance, appreciation or depreciation of the market and some other points I can't remember - too much hocus pocus and guesstimation, estimation and complication in that one to be of much use to me.

Mar 26, 2019 07:21 AM
Rainmaker
5,309,057
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Daniel,

Nina Hollander has you covered.  A

Mar 25, 2019 03:22 PM
Rainmaker
3,971,882
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

So many to choose from. Depends on the situation and probably a bit to do with my mood at the time!

Mar 25, 2019 03:19 PM
Rainmaker
1,690,478
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg Real Estate

Honestly none Daniel. The ones that you will use for the test will be just for that. I have a loan payment calculator on my phone, website, everywhere!

Nothing I ever have to do the long way.

Mar 26, 2019 05:35 AM
Rainmaker
3,830,820
Richard Weeks
Dallas, TX
REALTOR®, Broker

Sales price = $100,000

M commssion % = .o3

formult $100,000 * .03 = $3,000

Mar 26, 2019 03:31 AM
Rainmaker
961,553
Doug Dawes
Keller Williams Realty - Topsfield, MA - Georgetown, MA
Your Personal Realtor®

Barbara Todaro took the words right out of my mouth...lol

Mar 26, 2019 07:37 AM
Rainmaker
3,291,824
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

The most used math is acres to square feet or square feet to acres

Mar 26, 2019 05:58 AM
Rainmaker
1,707,197
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

ROI and the most difficult is what autocalulating spreadsheet do I use.

Mar 26, 2019 05:40 AM
Rainmaker
661,454
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

Decimals & Percentages. I have no difficulty with the Math I need to use.  

Mar 26, 2019 05:14 AM
Rainmaker
1,596,146
Valeria Mola
SIB Realty - Miami, Sunny Isles Beach - Sunny Isles Beach, FL
305-607-0709 SIB Realty Condos for Sale and Rent

You got great answers. 

Jul 06, 2019 12:56 PM
Rainmaker
1,698,915
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Candice A. Donofrio has your answer.

May 22, 2019 12:41 PM
Rainer
171,652
Dr. Karen Lewis, Broker 954-2489149
K1 Realty Group - Miramar, FL
No Compromise When it Comes to Our Clients!

My formula is the same as Barbara Todaro 

Mar 27, 2019 04:18 AM
Ambassador
2,990,766
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate

I wish you all the best with your real estate studies.

Mar 26, 2019 11:59 AM
Rainer
291,587
Libby Cousins
Extraordinary Processing - Spokane, WA
Contract Mortgage Processor, licensed in WA

Basic math here too. The 10 key helps speed it up!

Mar 26, 2019 09:09 AM