Net Present Value (NPV) is a topic of Commercial Real Estate Course. It helps us to find out the Present Value of an Investment or a Property. It is a very important concept that you can expect to see in your Real Estate Exams. Calculation Net Present Value is a critical topic.
This strategy is useful for Commercial Projects and Properties to determine the Net Present Value of any particular Commercial Property, thereby calculating the Future Value of the Property in Present times. It is thus, one of the most important topics of Commercial Real Estate.
What is Net Present Value?
Net present value (NPV) is a method used to determine the current value of all future cash flows generated by a project,
This is a way to determine which projects are likely to turn the greatest profit.
So, for example, if someone were to buy a Commercial Building, then in that case, we would have a yearly Cash Flow(CF). Thus, we can say we would have the Net Operating Income that would come in from the Commercial Property. We have to consider the income that we are making from the business that is running in the said commercial building for the current year as well as over the years and calculate the worth of that Income / Profit on this Present day.
The reason we have to do this is because we have to see if the project (of buying the Commercial Building) is bound to make profits or not. We can use the calculation of finding Net Present Value of various projects to see if we are going to make profits in future and will be able to give us the highest Rate of Return.
Example of NPV Calculation
Refer the Video for seeing the Actual Calculation
Example
Tammy is a real estate professional representing a client who is interested in purchasing a commercial building. Tammy believes she can negotiate a purchase price of $1,600,000. The client wants to sell the property after 4 years for $2,000,000 and earn an annual return of 12%. Tammy projects the annual net operating income to be $300,000 for the first year, $315,000 for the second year, $325,000 for the third year, and $345,000 for the fourth year. What is the net present value for the investment?
A) $462,387.25 B) -$620,484.39 C) $1,574,763.55 D) $640,591.69
This is NPV for Commercial Real Estate. You can tackle other Calculation Topics in the Commercial Real Estate Exams with our help and understanding of the topic. We can offer you concrete examples with Calculation Solutions and the tactics you can use within your Real Estate Calculators.
Want to learn the concept of Time Value of Money within your Commercial Real Estate Course? Hop On!
Join Alberta Real Estate School for expert help with understanding the concepts of Real Estate and getting uncommon and detailed tutoring sessions personalized as per your needs. Get our personalized Notes designed to get you through the Real Estate Exam in the first attempt! Visit our list of Real Estate Tutoring Sessions for details.
If you have any doubts for Exam Preparation of any of the real estate courses or topics, reach out to us directly at587.936.7779.
Happy Studying!
We hope you found this information useful. You can also listen to this blog on the Podcast Channel below. Stick to us for our latest updates.
Do you get Stressed while Writing the Exam?? If yes, don’t worry. You are not alone! The most common advice that we have to offer to our Students as a Real Estate Education Institute is how to Manage Real Estate Exam Stress. But believe us,Real Estate Exam Stressis Real!
Now, the time comes when you are actually attempting your real estate exam. Managing exam stress while you are writing the exam is apparently the most important thing you can come across as it can make or break your result. After all, you have been preparing for this moment since all this time. We have thus, come up with the most effective stress management techniques to implement –while you are writing your real estate exams.
Let’s have a look –
To list a few, below are some of the most effective Exam Tips that we discussed.
1. Arrive Well Rested
Rather than counting the exam day as the final day to prepare for the exam writing, count it from a day prior to that. If you are writing your exam tomorrow, you need to make sure that you get a good night’s sleep a night before writing the exam. It’s very important that you go into the exam hall well rested. It will help you to focus thoroughly on the exam questions and help you recall your study materials faster. We suggest not to cram too much a night before the exam because that is not going to help. This is one of the most important points which will help you manage your exam time effectively.
2. Read All the Instructions Carefully
Any Exam can come with a Pre-set of Rules and Instructions that needs to be followed in order to give the exam legally. Note and follow the Pre-Exam Instructions carefully. It is mandatory to abide by the set guidelines so make sure they are followed accurately. Any unethical, lousy, or unprofessional behavior can result in serious penalties and fines.
3. Do NOT Rush!
Rushing while writing is a good sign of anxiety. Rushing in attempting the exam can make you overlook important points that you might know. This might lead you to select wrong answers, especially if it is a multiple-choice question. You have to think carefully before answering the question, read the question properly and may be more than twice to make sure to understand the questions. There may be some tricks to confuse you. So you need to make sure whatever answers you are selecting are the ones that you want to select.
4. Manage Exam Anxiety
Anxiety increases our stress levels and heart rate. It can make you jittery and can make you forget your preparations and learnings. It is advised to stay as calm as possible so that you can focus at your best during the exam. Some tips to remain stress-free are listening to mild melodies and soft music for 2 to 5 minutes, avoiding last minute revisions or helping a friend in solving some doubts to boost your confidence levels. These tactics work in most scenarios.
5. Stay Hydrated
Water is animportant energy source for your brain. In fact, it can be more important than food on many grounds. We advice to carry a bottle of water to the exam hall as well. So that you have water at small intervals. This will get your brain the required amount of oxygen to function on regular levels. During the exam, you have to make sure you do everything that helps you keep your brain active, because that is one thing you need the most.
6. Manage Long Exam Durations
Other than being stressful, exams can be tiring. You are using all your energy, focus and retention powers to give your best during an exam. This can be quite exhausting. Especially, if the exam lasts for more than an hour. Real Estate Exam typically last for 2 to 3 hours. Thus, managing your exam durations is important. You can stretching your legs, hands and neck, drink water and get freshen up by going to a washroom if time permits. This can really help you stay calm and focus more with a refreshed mind.
7. Apply the Process of Elimination
This is very important for Exams that have a question format of Multiple-choice. Sometimes the questions asked and the options given are tricky, If possible, you can apply the Elimination Method to answer questions. It is simply looking for the options that you know are not true. Eventually, you will left with an option that is the answer. If you are still not sure, you can take a guess for an option that you feel correct. There are no negative markings for the wrong answers in the Real Estate Exam. So its in our best interest to attempt the question somehow rather than leaving it all together.
8. Skip Questions
This is another important tactic to save time and increase your efficiency while you are writing the exam. If you feel you don’t know the answer to a certain question, its best that you skip that question for now and attempt all other questions that you are confident about at first. Keeping difficult questions at the end of the exam helps save time, plus you don’t spend too much time thinking and worrying about the question that you are not sure.
9. Final Review
Once you are done with all the questions, it is advised to take a quick scan to all the answers that you have selected to make sure there are no mistakes. Multiple-choice questions can be confusing and one might select a wrong option in haste or just by accident. It is therefore important that you take a final review at your solutions so that you are not losing any marks out of mere accident.
10. Put the Exam in Perspective
Finally, exams are stressful and need a lot of preparations. Sometimes, you are not able to give your best at all times or have other unfortunate circumstances. Its not always in our hands to do what we intend for. And thus, once the exam is over, you should put the exam in perspective. Leave the stress and just wait for the results, you part is over. Always. keep smiling and try learning from your each of your experiences.
These are some of the Tips to keep in mind While you are Writing your Real Estate Exam. These tips will help you give your Exams Stress Free and make sure you Pass your Real Estate Exam in the very first attempt!
Join Alberta Real Estate School for expert help with understanding the concepts of Real Estate and getting uncommon and detailed tutoring sessions personalized as per your needs. Get our personalized Notes designed to get you through the Real Estate Exam in the first attempt! Visit our list of Real Estate Tutoring Sessions for details.
If you have any doubts for Exam Preparation of any of the real estate courses or topics, reach out to us directly at587.936.7779.
Happy Studying!
We hope you found this information useful. You can also listen to this blog on the Podcast Channel below. Stick to us for our latest updates.
With our previous Exam Preparation Tips, you must be all set to attempt your Alberta Real Estate Exams. But wait, here are some important things to keep in mind as you head out to write your exam. Alberta Real Estate school has identified some real struggle from the students that attempt to give the Alberta Real Estate Exams. We have thus, come up with a few Important and Effective Exam Day Tips that you can follow to ease out the stress on the day of the exam.
Let’s have a look –
To list a few, below are some of the most effective Exam Tips that we discussed.
1. Sleep Well
Rather than counting the exam day as the final day to prepare for the exam writing, count it from a day prior to that. If you are writing your exam tomorrow, you need to make sure that you get a good night’s sleep a night before writing the exam. It’s very important that you go into the exam hall well rested. It will help you to focus thoroughly on the exam questions and help you recall your study materials faster. We suggest not to cram too much a night before the exam because that is not going to help. This is one of the most important points which will help you manage your exam stress effectively.
2. Have Proper Breakfast
Make sure you have a proper healthy breakfast on the day of your exam. It is not advised to write an exam on a hungry stomach. Hunger can deviate your focus from the exam. Also, an empty stomach can make your more stressful and anxious in situations such as exam writing. A good breakfast can carry you through the long exam duration and will give your brain the energy to focus on the exam. Also, make sure not to eat too heavy of a breakfast, or you may feel sleepy and lethargic. In stead, a light, healthy and mindful breakfast can do the job.
3. Stay Hydrated
Water is just as important as food. In fact, it can be more important than food on many grounds. We advice to carry a bottle of water to the exam hall as well. So that you have water at small intervals. This will get your brain the required amount of oxygen to function on regular levels. During the exam, you have to make sure you do everything that helps you keep your brain active, because that is one thing you need the most.
4. Less Caffeine
Caffeine is the exact opposite of Water. As much as your body needs the water, it literally does not need Caffeine at all. We all love caffeine, and it tempts to have more of it when we are stressed. Caffeine dehydrates our body and increases our stress levels and heart rate. To the worse, it can make you jittery. It is advised to stay away from caffeine or at least have lesser caffeine so that you remain calm and focused during the exam.
5. Arrive Early
It is true when somebody quoted that – An Early Bird gets the Worm. In times of reaching the exam centre, make sure you are ready before the dictated time. You are aware of all the steps you need to reach the exam venue. The last thing you want to do is reach the exam hall late and lose your precious exam time. Though, Online Exams can make it easier for students if they are giving the exam from their choice of place, it is still necessary, to be on the spot before time. This way you are not stressed about losing the exam time if there is any confusion or bad luck on the way.
6. Have your Paperwork Ready
Whether it is an Online Exam or an Offline Exam, you are required to show your Personal Identification Documents to confirm your identity when attempting the RECA Exam. Prepare your Identification documents well in advance to present them whenever you are asked to. Losing a chance to write your exam just because you were not ready with appropriate documentation is something no one wants to do. You can use your – Driving License, Provincial ID Card, PR Card, Passport, or Citizenship Card as your Personal Identification Document.
7. Read All the Instructions Carefully
Any Exam can come with a Pre-set of Rules and Instructions that needs to be followed in order to give the exam legally. Note and follow the Pre-Exam Instructions carefully. It is mandatory to abide by the set guidelines so make sure they are followed accurately. Any unethical, lousy, or unprofessional behavior can result in serious penalties and fines.
These are some of the Exam Day Tips that you can keep in mind. These tips will help you give your Real Estate Exams Stress Free and make sure you Pass your Real Estate Exams in the very first attempt!
Join Alberta Real Estate School for expert help with understanding the concepts of Real Estate and getting uncommon and detailed tutoring sessions personalized as per your needs. Get our personalized Notes designed to get you through the Real Estate Exams in the first attempt! Visit our list of Real Estate Tutoring Sessions for details.
If you have any doubts for Exam Preparation of any of the real estate courses or topics, reach out to us directly at587.936.7779.
Happy Studying!
We hope you found this information useful. You can also listen to this blog on the Podcast Channel below. Stick to us for our latest updates.
Alberta Real Estate school is here to support you in passing the Alberta Real Estate Exams on the first attempt. The Real Estate Exams in Alberta are content-heavy and focus on a lot of industry-specific concepts that need to be precisely understood and learned. Based on our experience with helping a lot of students pass the exams, we’ve put together a list of Exam Preparation Tips to help you ace Alberta Real Estate Exams.
Let’s take a look at the Exam Preparation Tips for your Alberta Real Estate Exams. You can also watch the video for the same below –
To list a few, below are some of the most effective Exam Tips that we discussed.
1. Know What to Expect on the Exam
One of the most important point here is know what to expect on the exam. This is very crucial as it gives you an understanding on what you will see on the exam as well as how you will see it. When it comes to RECA’s Real Estate Exams in Alberta, there are certain things to keep in mind. They are:
Computer-based Exam: Alberta’s Real Estate Exams are completely computer-based. There is no need to write the exams through hands. All the exams are online and are submitted on a Computer at the Exam Centre.
Multiple-Choice Exam: All Questions on the exam are MCQs i.e., Multiple Choice Questions. You don’t have to type anything on the Exam. All you need to do is select the right option from a given set of options with the question.
Average No. of Questions:The average number of questions you can expect in any Real Estate Exam in Alberta can go between the range of 100 to 145 Questions.
Passing Marks:To pass the Alberta Real Estate Exams, you will need a minimum 70% of correct answers.
Exam Duration: The general duration of all the Alberta Real Estate Exams is 3 hours.
2. Good Study Environment
It is one of the most important exam preparation tips for any type of exam. We suggest having a set up that is similar to the exam set up that you are preparing to attempt for. Nicely lit, quiet, computer based set up which helps you to prepare for practice tests that give you a similar feel of giving an actual exam. Try not to get distracted from other things while preparing in the study environment. For example, family members or friends, pets, outside noise, unnecessary stuff lying around – all of these are common distractions. Applying this tactic can help you practice the concepts with focus as well as get used to the exam environment. So that on the actual exam day, you are not overwhelmed or stressed due to the exam set up or just the idea of attempting the exam. This tactic is proved to be very useful in real terms.
3. Take Personal Notes
Taking Personal Notes can be really helpful memorizing strategy for some. But apart from that, when we prepare personal notes, we can gauge our understanding of the concept and get a clear idea of the actual concept rather than just memorizing words from the materials.
Our Customized and Summarized Notes are the most effective to help you focus on the Important Topics of the Materials. Check them out HERE.
4. Time Management
This is the most common and the most difficult of all. Time Management is although a very simple concept. However, it is difficult for most of the people. The key point here is to plan according to the time available for each of the course. According to the updated Course Schedule by RECA, you have only 12 months to complete your 2 Real Estate Courses which leaves you with a period of 6 months for each course. Some simple steps that can prove as effective exam preparation tips for you:
Set SMART Goals: Start with creating aS.M.A.R.T (Specific, Measurable, Achievable, Realistic, Time-bound) Goal. This will not only help you to make smarter goals but will breakdown it into smaller parts that make it more sensible.
Create a Schedule: Having a schedule helps you plan your day effectively. Plus, you can function with time. You don’t have to stop and think what to do next. It creates a fixed pattern which can become a habit in no time if you follow it thoroughly.
Discipline: The last but the most important thing in time management is discipline. Everyone creates goals and schedules strategies to achieve them. But the one thing they miss out is consistency. You have to follow your schedule sincerely to make a difference.
Some effective principles of Time Management which improves productivity can include the following – ThePomodoro Technique,The80-20 Principle, The Productivity Rule of 3, The Cognitive Behavioral Therapy Technique of 2 Min, and many more.
5. Take Frequent Breaks
Sometimes, too much pressure and efforts can backfire. Studies have found that studying for long hours without taking any breaks does not let the brain retain as much information as it could. The key here is to set a perfect balance. Studying too little or too much can create pressure or stress which are both anti-productive. To strike a balance, you must study thoroughly for a significant period (say, an hour) and then take a short break (say, 15 min) to relax and re-energize your mind.
6. Stay Hydrated
Whether it is an Online Exam or an Offline Exam, you are required to show your Personal Identification Documents to confirm your identity when attempting the RECA Exam. Water is very important for brain functioning. It brings more oxygen for the brain making it active and healthy. Our body is developed in such a way that it needs water at small intervals, especially it is working. Now, studying requires a lot of efforts from the brain. It is also crucial to have enough water as per the location you are in. For eg, Alberta has a dry weather and thus it is necessary to have a good count of water intake for your body. Otherwise, the repercussions can seriously affect your overall health. It is not directly related to exam preparation but it is an important point to maintain a good physiology.
7. Get Enough Sleep
Sleep is again a very important element just like water. One must take optimum care of body for good results. Your efforts will count in for the results. And to put maximum efforts, you should be in a good physiological state to give your best shot every time you are making efforts. 100% efforts will show 100% results. Optimum sleep improves our brain’s retention power. Thus, make sure to maintain a stable and healthy schedule regularly.
8. Practice, Practice & Practice
It’s simple – The more you practice, the more you get better. When you are preparing for an exam, you are preparing for an uncertain test. The most efficient way to practice here is prepare your best and take mock tests as much as often to test your retention skills and revise the information you have memorized. If you are directly going to the exam without any test practice, you can get overwhelmed with the fear as your mind is not trained to give a test on the study topics you prepared. Make yourself familiar with the test environment, so that it is easy for you to go through the exam mentally.
9. Reward Yourself
Rewarding yourself for the efforts you have made is very important. It gives you confidence, self trust, and self-love — all the things that you need to pass an exam. Your attitude and perspective should be in place to achieve a goal. This is something most people ignore and thus, they lose something that they could easily achieve. The confidence and trust from small accomplishments can actually help you gain confidence for the biggest goals.
10. Get Help!
It is important to understand that it is not necessary to do it all on your own. Surely, you have to try your best. But when you need help, be realistic, be sensible. Asking for help when you need is a smart and courageous move. When it comes to preparing for the RECA Exams, you have don’t just have to pass the exams, you have to understand the real estate concepts thoroughly enough that you are able to help buyers make a correct decision. A Real Estate Agent has huge responsibilities that should be taken care of precisely. Thus, when you are preparing to be one, be sure you get the right sources of help from industry experts who knows the industry.
These are some of the best and the most effective Exam Preparation Tips that you can adopt. These tips will help you give your Real Estate Exams Stress Free and make sure you Pass your Real Estate Exams in the very first attempt!
Still Stressed about your Real Estate Exams? We will tell you the Most Effective Techniques to Manage your Alberta Real Estate Exams.
Join Alberta Real Estate School for expert help with understanding the concepts of Real Estate and getting uncommon and detailed tutoring sessions personalized as per your needs. Get our personalized Notes designed to get you through the Real Estate Exams in the first attempt! Visit our list of Real Estate Tutoring Sessions for details.
If you have any doubts for Exam Preparation of any of the real estate courses or topics, reach out to us directly at587.936.7779.
Happy Studying!
We hope you found this information useful. You can also listen to this blog on the Podcast Channel below. Stick to us for our latest updates.