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Rainmaker
1,056,272
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
5,583,328
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

sale price x commission rate = my income

Mar 25, 2019 03:14 PM
Rainmaker
2,399,936
Bob "RealMan" Timm
Ward County Notary Services - Minot, ND
Owner of Ward Co Notary Services retired RE Broker

The formula to calculate my commission Daniel Lloyd 

Mar 25, 2019 02:02 PM
Rainmaker
1,506,013
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
Ambassador
2,187,587
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

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
Ambassador
3,138,800
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

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
7,863,184
Roy Kelley
Retired - Gaithersburg, MD

No problems. Use a financial calculator.

Mar 25, 2019 05:00 PM
Rainmaker
1,206,261
Peter Mohylsky, Beach Expert
PMI. Destin - Miramar Beach, FL
Call me at 850-517-7098

figuring out my commission split

Mar 25, 2019 04:32 PM
Rainmaker
1,323,044
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
5,112,471
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
510,564
Joseph Domino 480-390-6011
HomeSmart - Scottsdale, AZ
Real Estate Made Easy

Purchase Price X .03

Mar 25, 2019 02:12 PM
Ambassador
5,254,035
Debe Maxwell, CRS
Savvy + Company (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
Rainmaker
970,983
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
1,553,319
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego
  1. Cap Rate
  2. The shrinking Commission %
Mar 25, 2019 04:45 PM
Rainmaker
934,152
Chuck Willman
Chuck Willman - Alpine, UT
NewHouseUtah.com

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
2,784,566
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
6,417,434
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

We use dozens of formulas for sampling and statistics.

Mar 25, 2019 02:51 PM
Rainmaker
469,510
Dan & Laurie Pittsenbarger Team
Keller Williams Western Realty - Bellingham, WA
Lakeside & Coastal Single Family Homes

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
5,772,581
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
5,239,012
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
1,846,901
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

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
4,900,966
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
1,201,477
Doug Dawes
Keller Williams Evolution - 447 Boston Street, Suite #5, Topsfield, MA - Topsfield, MA
Your Personal Realtor®

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

Mar 26, 2019 07:37 AM
Rainmaker
3,416,038
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
1,712,776
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
759,485
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
1,598,452
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
2,221,377
Anthony Acosta - ALLATLANTAcondos.com
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Candice A. Donofrio has your answer.

May 22, 2019 12:41 PM
Rainer
177,949
Dr. Karen Lewis, Broker 954-2489149
Align Right Realty K1 Group - Fort Lauderdale, FL
No Compromise When it Comes to Our Clients!

My formula is the same as Barbara Todaro 

Mar 27, 2019 04:18 AM
Ambassador
3,349,404
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

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

Mar 26, 2019 11:59 AM
Rainer
376,587
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
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