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ARGUS CERTIFICATION
PRACTICE TEST / ARGUS
CERTIFICATION EXAM
How would you blend the Direct Capitalization with the Unleveraged Present Value of the property? (ONLY ASIA) - ANSWERS-Select the Calculate a Blended Value (ONLY ASIA) Property Resale window - ANSWERS-Where resale assumptions are made Ways to calculate the resale at the end of the analysis (3) - ANSWERS-Capitalize NOI, Apply Rate to following year income, Calculate Resale for All Years Capitalize NOI - ANSWERS-Divides the NOI in the final analysis year by the cap rate Gross Proceeds from Sale = (formula) - ANSWERS-NOI/Cap Rate Apply Rate to following year income (Property Resale) - ANSWERS- Resale proceeds will be calculated using the following year of the analysis
Calculate Resale for All Years (Property Resale) - ANSWERS- Calculate and display proceeds for each analysis year (for reporting purposes) Where can you find the Cap Rate Matrix? - ANSWERS-Bottom right icon of the Property Resale screen Cap Rate Matrix - ANSWERS-Allows your to input a range of Cap Rates that will calculate a range of PVs in a Cap Rate Matrix Report Present Value Discounting - ANSWERS-Pg. 46 To access the Cap Rate Matrix Report - ANSWERS-Reports, Property Level..., Check Prospective Present Vale Options, Check Cap Rate Matrix Prospective Resale and IRR Summary Report - ANSWERS-Shows what we think we will get back and when Frequency of Reimbursable Expenses can be entered as (x) in the drop down menu - ANSWERS-Annually, Monthly, Quarterly Present Value Discounting - ANSWERS-target internal rate of return
To lock down a specific property and restrict who can edit it, click the button located in the ARGUS Enterprise Ribbon bar.
- ANSWERS-Check Out Property True or False: You can import and/or export v15 DCF files from ARGUS Enterprise. - ANSWERS-True The Expense Inflation Rate will be the default percentage for: a) Operating Expenses b) Non-Operating Expenses c) Capital Expenses d) All of the above - ANSWERS-All of the above True or False: Every inflation category must be given a number or it will default to the General Inflation Rate. - ANSWERS-False Assuming a 60% occupancy, calculate the Vending Machine revenue in Year 1 of the analysis (revenue is $13,000 with fixed percentage of 0%). - ANSWERS-$7,800 (.6*13000) Assuming a 0% occupancy, calculate the Vending Machine revenue in Year 1 of the analysis. - ANSWERS-$ Assuming 100% occupancy, calculate the Vending Machine revenue in Year 1 of the analysis. - ANSWERS-$13,
What is the Capital Expense amount that will appear on the Cash Flow? - ANSWERS-$63,654??? Free Rent, by default, kick in at the beginning of the. - ANSWERS-Tenant's Lease Start Date The default recovery structure in ARGUS enterprise is. - ANSWERS-Net The Available Date column in the Tenants - Rent Roll, represents the start of the tenant's lease. - ANSWERS-False. The Start Date represents the start of the tenants lease. True or False: By default, Tenant Improvements and Leasing Commissions are paid at the start of the tenant's lease. - ANSWERS- True True or False: The Upon Expiration field within the Market Leasing profile allows users to select a different Market Leasing profile to be used after the first Market Leasing term is over. - ANSWERS-True Contractual Renewal: a) Utilizes the Renew Market Leasing profile terms b) Utilizes the New Market Leasing profile terms c) Inserts a new contract lease into the Rent Roll d) None of the above - ANSWERS-c) Inserts a new contract lease
enter in for the Lease dates? - ANSWERS-The Available Date needs to be when the space is actually available and the Start Date needs to be when the tenant's lease begins. True or False: Step Rent increases can be applied in the Step Rent field or in the Base Rent varies window. - ANSWERS-True Assuming a sale date of December 2020, what will be the net proceeds from sale if we have a resale calculation that capitalizes the NOI 12 months after sale? - ANSWERS-(2021 NOI / 10% Cap Rate)(1.0 - 3% adjustment) Assuming a sale date of December 2020, what will be the net proceeds from sale if we have a resale calculation that capitalises the NOI of the sale year? - ANSWERS-(202 NOI / 10% Cap Rate)(1.0 - 3% adjustment) When using an Available date that is before the Start date, the loss in potential rent (Base Rental Revenue) can be shown on which report? - ANSWERS-Lease Audit is used in retail properties where tenants are expected to pay a percentage of their sales to the property owner. - ANSWERS-Percentage Rent What is the default calculation formula for Chargeable Sales? - ANSWERS-Sales Volume - Breakpoint
Calculate the General Vacancy Loss using the following assumptions:
- PGR: $800,
- ATV: $20,
- Calculation: 5% of PGR - ANSWERS-[(800,000 + 20,0000)*0.05] - $20,000 = $21, True or False: Additional principal payments can be factored into the loan computations? - ANSWERS-True While running a 7-year analysis on a property with a 30-year debt note in ARGUS Enterprise, the note will at the end of the projection. - ANSWERS-Balloon After changing the modeling policy for Gross Ups, any Recovery Structure already created will default to the Gross Up percent in the Modeling Policies window. - ANSWERS-False The default formula for Leasing Commissions is: - ANSWERS-Base Rent + Step Rent + CPI - Free Rent To indicate that an expense should not be included in the cash flow projection nor used in the calculation of the NOI, select
- ANSWERS-Reference Only True or False: The percentage of the expense that is eligible to be recovered can be altered for the entire property within the Expense tab
- ANSWERS-True
All of the following are options for exporting Portfolio Level Reporting except: a) Excel b) Tiff c) PDF d) HTML - ANSWERS-d) HTML Task Pane provides a number of shortcuts and convenient functions, which include: - ANSWERS-Getting Started, ARGUS Alerts, ARGUS Valuation - DCF Wizard, and Shared Workspace Getting Started (Task Pane) - 4 - ANSWERS-Create new files, open recent files, connect to ARGUS website, and access a shared workplace online ARGUS Alerts - ANSWERS-Login to the ARGUS website to receive instant alerts, news, and other information Property Library - ANSWERS-Window allows you to view a list of property files in the active directory when other ARGUS Valuation - DCF property files are open. Toolbar (on the Property Library window) - ANSWERS-Allows you to navigate to directories and to perform actions on one or multiple ARGUS files without opening the files themselves
Items of Property Library Toolbar (5) - ANSWERS-Email a file to someone, report on a batch of ARGUS files, create a portfolio, compare two or more files, add selected files to the Tenant Registry When creating a ARGUS file it is best to start with... - ANSWERS-the Property Description Inputs of Property Description - ANSWERS-Basic property information - timing area measures, and inflation What is the first window to appear when creating a new file? - ANSWERS-Property Description window Where is the password button found? - ANSWERS-Property Description window Property Type can or cannot be changed once selected? - ANSWERS- CANNOT! Property Timing tab is found where? - ANSWERS-Property Description window Property Timing tab includes: - ANSWERS-Analysis start date, Reporting Start Date, and # of years to Report or End Date
If an inflation field is left empty... - ANSWERS-it will default to the General Inflation Rate Why is inflation in year 1 never available? - ANSWERS-Because it does not occur until the beginning of the 2nd year Inflation input into Year 2 will apply to which years numbers? - ANSWERS-Year 1 When entering the Property Size, enter the (blank) area - ANSWERS- net rentable Default inflation is? - ANSWERS-0% unless changed The main screen that displays once a file has been created or opened - ANSWERS-Executive Dashboard Executive Dashboard - ANSWERS-Basic summary of all the Year 1 information in an ARGUS Valuation - DCF file In the Executive Dashboard, where are the links to the input screens found? - ANSWERS-Icons on the tool bar as well as the links in grey type
The Globe and Magnifying Glass icon - ANSWERS-Is a link to view the property in Google Maps Where are the Export, Print, Calculate, and Pause button located? - ANSWERS-Bottom right hand corner Where is the import Graphic icon located? - ANSWERS-Upper left corner of the executive dashboard The Import Graphics icon - ANSWERS-Import images and will be included on each new property created with that template To create or modify a dashboard select the (blank) - ANSWERS- Dashboard template icon Where is the Dashboard Template icon located? - ANSWERS-The toolbar of the executive dashboard What are the (blank) per-formatted Dashboard templates? - 6 - ANSWERS-Valuation Summary, Classic, Investment, Appraisal,Lending, and Navigation Miscellaneous Revenues - ANSWERS-Are property-level income items not paid by the tenants. Any operating revenue not paid by the tenants can be entered in this screen.
Rebursable Expenses - ANSWERS-Property expenses the landlord will recover. All entires will be available for reimbursement by the tenants. Common Reimburment Expenses - ANSWERS-CAM, Taxes, Insurance, Repairs & Maintence Reimbursable Expenses may be entered as (7) - ANSWERS-Simple Amount, Detailed Amount, % of EGR, $/Area, % of Constant, % of Line, % of Fixed column - ANSWERS-Determines the amount of the expense ( or revenue) that is based on occupancy Capital Expenditures - ANSWERS-Not considered part of a property's NOI and appear below the income line on the CF in the Capital Costs section Typical CapEx are: - ANSWERS-Stuctural or Capital reserves, building repairs, or improvements (anything to improve te property value that is not routine) Property Level reports can be accessed in (2) ways - ANSWERS- Property level Reports icon in the toolbar or Reports Menu - Property Level selection
Property Level Reports can be viewed - ANSWERS-Annually, Monthly, Quarterly, Semi- Annually Ways to access the Rent Roll - ANSWERS-From tenant menu --> select Rent Roll, or clock the Rent Roll icon on the toolbar Default Lease Type choices are: - ANSWERS-Office, Retail, Industrial, Pad Site and Storage In the Rent Roll, enter the Base/Min Rent field as (3) - ANSWERS- Amount per area, total amount for a given period, or percent of market rent What are three ways a tenant can reimburse expenses? - ANSWERS- None, Net, or Base Stop Net reimbursements - ANSWERS-Triple net leases - tenant will pay their natural pro-rata share of all Reimbursable Expenses Base Stop - ANSWERS-Typically 1 year and in Office spaces What kind of reimbursement method is used for gross leases? - ANSWERS-Base Stop True of False: An ARGUS Valuation - DCF cannot calculate a base year prior to the analysis start date - ANSWERS-True
Formula for the Market Rate Upon Expiration calculations - ANSWERS-[Renewal Mkt% x Renewal Mkt Numbers] + [New Mkt% + new Mkt Numbers] = Market Rate Possible Options of the Upon Expiration drop-down menu (6) - ANSWERS-Market, Renew, Vacate, Option, ReAbsorb, Non- Contiguous Yield Menu contains (4) - ANSWERS-Property Purchase Price, Property Resale calculation, Present Value Discount rate, and Debt Financing Once revenues, expenses, and costs have been entered the next step is... - ANSWERS-to enter the purchase price along with a resale calculation Direct Capitalization is useful for brokers because - ANSWERS-they typically determine the value of the property using the "going in" cap rate The Capitalization Period - ANSWERS-is a 12 - month period of income into which the cap rate is divided Direct Cap Capitalization Options (3) - ANSWERS-Year One, Year Starting in Month, First 12 months
Capitalization Period: Year One - ANSWERS-Use the first calendar year of the analysis period Cap Period: Year Starting in Month x - ANSWERS-select a specific month within the 12 month period Cap Period: First 12 Months - ANSWERS-use the first 12 months of the analysis Difference between Cap Period Year One and First 12 Months - ANSWERS-Is when the first year of the analysis is less than 12 months (ex: 1/12 - 6/12) True of False: Extra months are always placed at the beginning of the analysis - ANSWERS-TRUE
