ARGUS Enterprise Certification Exam Practice Test: Comprehensive Guide with Answers - Prof, Exams of Nursing

Download ARGUS Enterprise Certification Exam Practice Test: Comprehensive Guide with Answers - Prof and more Exams Nursing in PDF only on Docsity! 1 ARGUS CERTIFICATION EXAM, ARGUS CERTIFICATION PRACTICE TEST, ARGUS CERTIFICATION EXAM WITH 100% CORRECT ANSWERS 2024 User Recovery Structures - Correct Answer-You can also create user-constructed recovery structures. These provide you with the ability to create custom recovery structures which apply different recovery methods to individual expenses or expense groups. This flexibility allows you to model virtually any recovery structure you might encounter in a commercial real estate lease contract. Market (Upon Expiration) - Correct Answer-Renewal processed based on the renewal probability in the Market Leasing profile (weighted average calculations of new and renewal rates for market rents, TI's, LC's etc.) Reabsorb - Correct Answer-All income for the space will cease when the initial lease term expires. In other words the space "goes dark" and does not lease again. This allows the space to be "reabsorbed" or re-leased either in full or in smaller sections Renew - Correct Answer-Assumes a 100% renewal probability for the current renewal period. A new speculative lease is created based on the renewal market entries in the Market Leasing profile. Vacate - Correct Answer-Assumes a 0% renewal probability for the current renewal period. A new speculative lease is created based on the new market entries in the Market Leasing profile. 2 Option - Correct Answer-AE will entirely ignore the Market Leasing profile, and will insert a new speculative lease line into the Rent Roll. Select Option only if specific rent and parameters of the option term are known. Contract Renewal - Correct Answer-AE will ignore the Market Leasing profile, and will insert a new contract lease into the Rent Roll. Select Contract Renewal if the specific rent and parameters of the renewal are known. Month to Month - Correct Answer-AE will ignore the Market Leasing profile, and will insert a new speculative lease line into the Rent Roll. This option can be used after a lease expires and a tenant needs to occupy the space for only a couple more months before vacating. Holdover - Correct Answer-AE will ignore the Market Leasing profile, and will insert a new speculative lease line into the rent roll. A holdover tenant is a renter who remains in a property after the expiration of the lease. If the landlord continues to accept rent payments, the holdover tenant can continue to legally occupy the property. State laws and court rulings determine how long the holdover tenant's new rental term is if the landlord accepts rent. Lease Type: Contract v. Speculative - Correct Answer-Contract: The tenant is under contract and occupies space in the building. Speculative: The tenant is not currently in the building Custom Lease Status: This option includes any custom lease statuses you have created. Breakpoint - Correct Answer-The sales amount which must be achieved prior to the payment of any percentage rent. Natural Breakpoint - Correct Answer-If you select this option, the percentage rent will be calculated based on the natural breakpoint. 5 a. Amount 1 b. Sub-lines c. % of Other d. Currency Amount / Vacant Area - Correct Answer-c. % of Other To replicate a value in a specific month of each year during the project for a specific expense, you must click which button in the amount 1 Varies window? a. Copy Across & Down b. Copy to End c. Copy Column to End d. Column - Correct Answer-c. Copy Column to End When calculating a Market Leasing profile with the Upon Expiration set to Renewal, Enterprise ________________________________________. a. Assumes a 0% renewal b. Takes a weighted average c. Assumes the space goes dark d. Assumes a 100% renewal - Correct Answer-d. Assumes a 100% renewal The Upon Expiration field within the Market Leasing profile allows us to select any overrides for past terms (T/F) - Correct Answer- False The Gross Sale Price is calculated by taking the NOI to capitalize and dividing it by the ______________________, when using CAP NOI (12 Months After Sale). - Correct Answer-Cap Rate Tenant Improvements/Leasing Commissions can be subtracted out of the Resale calculation (T/F) - Correct Answer-True 6 Parameters for the Discount Rate Change Interval on the IRR Matrix report can be changed in the _________________ tab? - Correct Answer- Assumptions Within the Investments tab, the _______________________ tab is used to calculate notes outside of the AE system. - Correct Answer-Other Debt By default, ARGUS Enterprise calculates loans on a 12 month basis (T/F) - Correct Answer-True Enter Other Debt information into the Valuation tab (T/F) - Correct Answer-False When you have a one-time increase, or an increase that happens at different increments or times utilize the Fixed Steps Unit column (T/F) - Correct Answer- When entering an Available Date prior to the Start Date within the Rent Roll - Correct Answer- Net - Correct Answer-All recoverable expenses are paid by the tenant based on their proportionate share of the building area. Base Year Stop - Correct Answer-All recoverable expenses are paid by the tenant based on their proportionate share of the building area over a stop amount, which is the amount of annual recoverable expenses in the base year, or first year, of the lease calculated by the system. If the tenant's lease begins prior to the analysis start date and you select Base Year Stop, the calculated stop will use all reimbursable expenses in the first year of the analysis. 7 Stop Amount - Correct Answer-Enter the building stop amount. Tenants for whom you select this method will reimburse all recoverable expenses over the building stop amount entered based on their proportionate share of the building area. Stop Amount/Area - Correct Answer-Enter the building stop amount/area. Tenants for whom you select this method will reimburse all recoverable expenses over the building stop amount/area entered based on their proportionate share of the building area. Fixed Amount - Correct Answer-Enter the annual recovery amount that will be paid by the tenant each year. The fixed amount can be a single amount or it can vary over time. The fixed amount is a tenant amount not a building amount. Fixed Amount/Area - Correct Answer-Enter the annual amount/area recovery that will be paid by the tenant each year. The fixed amount/area can be a single amount or it can vary over time. The rate entered varies according the amount of area under lease, not according to the entire building area. None - Correct Answer-No recoveries will be calculated for the tenant. Market - Correct Answer-Select the tenants to be included in the Market calculation. Base Year Stop +1 - Correct Answer-Expense stop will be established by the amount of recoverable expenses in the recovery year following the year the lease begins. Note if you select this method and the lease year is before the analysis start date, yet within the first recovery year, then the expense stop will be set to equal the recoveries from the second recovery year. If you select this 10 d) None of the above - Correct Answer-c) Inserts a new contract lease The inflation rates are displayed on which report? - Correct Answer- Property Summary Which report displays New Market, Renewal Market, and Weighted Average results? - Correct Answer-Assumptions Report When your resale calculation is set to CAP NOI (12 months after sale), which year's NOI will be used when analyzing a 6-year analysis? - Correct Answer-The 7th years NOI If 12% is a desired return, enter 12% in the ________________ parent tab. - Correct Answer-Valuation What will LB Corporation pay for reimbursements in 2016 if 2016 is the base year in a base year stop structure? - Correct Answer-$0 What will LB Corporation pay for reimbursements in 2017? - Correct Answer-The amount of 2017 total operating expenses over 2016 total operating expenses What will LB Corporation pay for reimbursements in 2018? - Correct Answer-The amount of 2018 total operating expenses over 2016 total operating expenses If a tenant's space is available, but sitting vacant before they move in and you want to show that vacancy on reports, what do you need to enter in for the Lease dates? - Correct Answer-The Available Date needs to be when the space is actually available and the Start Date needs to be when the tenant's lease begins. 11 True or False: Step Rent increases can be applied in the Step Rent field or in the Base Rent varies window. - Correct Answer-True Assuming a sale date of December 2020, what will be the net proceeds from sale if we have a resale calculation that capitalizes the NOI 12 months after sale? - Correct Answer-(2021 NOI / 10% Cap Rate)*(1.0 - 3% adjustment) Assuming a sale date of December 2020, what will be the net proceeds from sale if we have a resale calculation that capitalises the NOI of the sale year? - Correct Answer-(202 NOI / 10% Cap Rate)*(1.0 - 3% adjustment) What are three ways a tenant can reimburse expenses? - Correct Answer-None, Net, or Base Stop Net reimbursements - Correct Answer-Triple net leases - tenant will pay their natural pro-rata share of all Reimbursable Expenses Base Stop - Correct Answer-Typically 1 year and in Office spaces What kind of reimbursement method is used for gross leases? - Correct Answer-Base Stop True of False: An ARGUS Valuation - DCF cannot calculate a base year prior to the analysis start date - Correct Answer-True Rent Abatement - Correct Answer-Number of months of free rent for the current lease STARTED AT THE BEGINNING OF THE LEASE TERM Leasing Costs - Correct Answer-Consist of Tenant Improvements and Leasing Commissions 12 Tenant Improvement default unit is... - Correct Answer-$/SqFt Leasing Commissions default unit is... - Correct Answer-Percentage of a tenant's total rent Market Leasing Assumptions are used for what purpose? - Correct Answer-To control what happens to the contract lease after it expires and goes to market Market Leasing Assumptions can be accessed from (2) - Correct Answer-Executive Dashboard(Market drop down menu, market leasing assumptions) or from the Rent Roll Upon Expiration drop-down menu - Correct Answer-Control how the program will blend the MLA numbers Market (Upon Expiration selection) - Correct Answer-Weighted average of new and renewal numbers Formula for the Market Rate Upon Expiration calculations - Correct Answer-[Renewal Mkt% x Renewal Mkt Numbers] + [New Mkt% + new Mkt Numbers] = Market Rate Possible Options of the Upon Expiration drop-down menu (6) - Correct Answer-Market, Renew, Vacate, Option, ReAbsorb, Non- Contiguous Yield Menu contains (4) - Correct Answer-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... - Correct Answer-to enter the purchase price along with a resale calculation 15 -PGR: $800,000 -ATV: $20,000 -Calculation: 5% of PGR - Correct Answer-[(800,000 + 20,0000)*0.05] - $20,000 = $21,000 True or False: Additional principal payments can be factored into the loan computations? - Correct Answer-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. - Correct Answer-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. - Correct Answer-False The default formula for Leasing Commissions is: - Correct Answer- 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 ________________ - Correct Answer-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 - Correct Answer-True What is the default formula for Free Rent? - Correct Answer-Base Rent + Fixed Steps + CPI True or False: Months Vacant Overrides will only affect the first rollover and there will be no blending based upon the renewal probability. - Correct Answer-True 16 True or False: The Batch Update allows a user to model several changes simultaneously instead of performing each individual adjustment. - Correct Answer-True True or False: When creating a sensitivity scenario, changes to individual properties may be made at the top of the screen. - Correct Answer-False Different levels of detail can be set for the Audit Log in which Portfolio Application tab? - Correct Answer-Portfolio Details To change the report interval setting, click the _____________ button. - Correct Answer-Report Options Which report within Portfolio Level Reports will show individual property information that makes up the selected cash flow totals? - Correct Answer-Cash Flow Detail All of the following are options for exporting Portfolio Level Reporting except: a) Excel b) Tiff c) PDF d) HTML - Correct Answer-d) HTML Task Pane provides a number of shortcuts and convenient functions, which include: - Correct Answer-Getting Started, ARGUS Alerts, ARGUS Valuation - DCF Wizard, and Shared Workspace Getting Started (Task Pane) - 4 - Correct Answer-Create new files, open recent files, connect to ARGUS website, and access a shared workplace online 17 ARGUS Alerts - Correct Answer-Login to the ARGUS website to receive instant alerts, news, and other information Property Library - Correct Answer-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) - Correct Answer-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) - Correct Answer-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... - Correct Answer-the Property Description Inputs of Property Description - Correct Answer-Basic property information - timing area measures, and inflation What is the first window to appear when creating a new file? - Correct Answer-Property Description window Where is the password button found? - Correct Answer-Property Description window Property Type can or cannot be changed once selected? - Correct Answer-CANNOT! Property Timing tab is found where? - Correct Answer-Property Description window 20 To create or modify a dashboard select the (blank) - Correct Answer-Dashboard template icon Where is the Dashboard Template icon located? - Correct Answer- The toolbar of the executive dashboard What are the (blank) per-formatted Dashboard templates? - 6 - Correct Answer-Valuation Summary, Classic, Investment, Appraisal,Lending, and Navigation Miscellaneous Revenues - Correct Answer-Are property-level income items not paid by the tenants. Any operating revenue not paid by the tenants can be entered in this screen. What are examples of miscellaneous revenues? - Correct Answer- Vending machines or rental of roof antennas What are the possible misc. revenues that can be selected? (5) - Correct Answer-% of EGR, $ Amount, $/Area, % of Constant, % of Line % of Line - Correct Answer-Misc revenue; the allows the revenue to be based on a percentage of other items in the property % of EGR - Correct Answer-Misc. Revenue; percentage of the Effective Gross Income $ Amount - Correct Answer-Misc. Revenue; interpreted as a full payment amount $/Area - Correct Answer-Misc. Revenue; multiplied by the area measure selected in the area column 21 % of Constant - Correct Answer-Misc Revenue; interpreted as a percentage of the Amount column. If the amount of revenue is set to (blank), the Area/Constant column will be unavailable - Correct Answer-$ Amount, % of EGR, % of line Rebursable Expenses - Correct Answer-Property expenses the landlord will recover. All entires will be available for reimbursement by the tenants. Common Reimburment Expenses - Correct Answer-CAM, Taxes, Insurance, Repairs & Maintence Reimbursable Expenses may be entered as (7) - Correct Answer- Simple Amount, Detailed Amount, % of EGR, $/Area, % of Constant, % of Line, % of Fixed column - Correct Answer-Determines the amount of the expense ( or revenue) that is based on occupancy Capital Expenditures - Correct Answer-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: - Correct Answer-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 - Correct Answer-Property level Reports icon in the toolbar or Reports Menu - Property Level selection Property Level Reports can be viewed - Correct Answer-Annually, Monthly, Quarterly, Semi- Annually 22 Ways to access the Rent Roll - Correct Answer-From tenant menu -- > select Rent Roll, or clock the Rent Roll icon on the toolbar Default Lease Type choices are: - Correct Answer-Office, Retail, Industrial, Pad Site and Storage In the Rent Roll, enter the Base/Min Rent field as (3) - Correct Answer-Amount per area, total amount for a given period, or percent of market rent Cap Rate Matrix - Correct Answer-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 - Correct Answer-Pg. 46 To access the Cap Rate Matrix Report - Correct Answer-Reports, Property Level..., Check Prospective Present Vale Options, Check Cap Rate Matrix Prospective Resale and IRR Summary Report - Correct Answer- Shows what we think we will get back and when Frequency of Reimbursable Expenses can be entered as (x) in the drop down menu - Correct Answer-Annually, Monthly, Quarterly Present Value Discounting - Correct Answer-target internal rate of return