Welcome to The CRE Knowledge Assessment Test
The test is designed to allow you to assess your level of knowledge related to the commercial real estate business.
The test is designed to allow you to assess your level of knowledge related to the commercial real estate business.
The test is brought to you on a complimentary basis by REFAI Certification.
You can learn about REFAI Certification in the video below.
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In your learner profile you have a list of all of your quizzes and links to view the quiz and answer explanations. Here are instructions for how to view them.
There are hundreds of more vocabulary terms, concepts and analytical structures to know in addition to the 20 items tested in this quiz. Want to master it all? Consider our REFAI Certification course, which includes 3 Excel skills Certifications in its curriculum.
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By what is the senior mortgage loan secured in a real estate transaction? (select all that apply)
A commercial real estate property is typically valued on the following bases: (select all that apply)
What formula would we use to calculate the present value of future cash flow?
The IRR is classically defined as the average annual rate of return for a stream of expected (or actual) cash flows that generate an NPV of what?
What does the IRR not reveal about a property’s cash flow stream?
As total leverage increases, how will the NOI respond?
In each successive period of an amortizing loan, the following will occur simultaneously:
If a tenant has a triple net (NNN) lease, they are responsible for their prorata portion (as measured by their rentable square footage vs. that of the entire building) of which of the following?
A relatively low cap rate is reflective of what?
Net leasable square footage refers to which of the following definitions?
A Preferred Return is (check all that apply):
What includes the items necessary to make a tenant’s space fully operational?
Other than simply not having enough capital to purchase an asset, what reasons might an investor have for utilizing debt financing for their acquisition or development projects? (select all that apply)
Mezzanine financing can take the following form(s): (select all that apply)
Commercial lenders underwrite and generate loans, and fixed income mutual funds and pension funds invest in fixed income securities. How did CMBS issuances allow mutual and pension funds to invest in real estate through commercial lenders?
Which Option would yield the higher Net Present Value of Expected Values? Option 1: a sale at the end of Year 3 for $2,000,000 with an Annual Discount Rate of 7%, OR Option 2: a sale at the end of Year 3 for $1,800,000 with an Annual Discount Rate of 4%?
You are the owner of an office building and want to understand what a future refinancing might look like. What is the maximum allowable debt service amount (cell D22)?
Assume the following for the purchase of Sterling Towers:
What is the annualized return on equity? Please use the provided Excel spreadsheet to calculate your answer.
Assume that you have partnered with a limited partner (LP) and are operating as the sponsor and GP of a real estate private equity fund where purchase and exit occur with one year. Using the Excel provided and the assumptions below, calculate the return on investment to you, the sponsor.
Assuming that a property owner chooses not to sell their property outright, there is still the alternative exit strategy of refinancing the property. If you are the owner of the Jessica Crest Apartments and you intend to refinance the property rather than sell it, calculate your proceeds from the refinancing after repaying the original loan. Please assume the following: