Real Estate Math
A Delaware broker's monthly gross commission income is $18,500. The office overhead is 30% of GCI. The broker's take-home is $18,500 minus overhead. What is the broker's monthly income?
A$12,950✓ Correct
B$13,400
C$11,700
D$14,500
Explanation
Overhead = $18,500 × 0.30 = $5,550.
People Also Study
Related Delaware Questions
- A Delaware real estate office generates $485,000 in gross commission income annually. If overhead is 40%, how much is available for broker compensation and profit?Real Estate Math
- A Delaware borrower's gross monthly income is $5,000. Using a 28% front-end ratio, what is the maximum monthly PITI payment the borrower qualifies for?Finance
- A Delaware buyer's gross monthly income is $7,500. Using a 43% back-end (total debt) ratio, what is the maximum total monthly debt (including housing)?Real Estate Math
- What is the debt-to-income ratio for a Delaware borrower with $1,850 housing payment, $350 car payment, $250 student loan payment, and $6,500 gross monthly income?Real Estate Math
- A Delaware apartment building has 20 units. 18 are rented at $1,200/month. The other 2 are vacant. What is the current occupancy rate and the effective gross monthly income?Real Estate Math
- A Delaware property has a potential gross income of $72,000, a vacancy rate of 5%, and annual operating expenses of $28,000. What is the net operating income (NOI)?Real Estate Math
- A Delaware commercial building has 10,000 sq ft of rentable space. The annual rent is $18 per sq ft. What is the annual gross rental income?Real Estate Math
- An investment property in Delaware has a potential gross income of $96,000. The vacancy rate is 7.5% and operating expenses total $32,000. What is the net operating income?Real Estate Math
Key Terms to Know
Debt-to-Income Ratio (DTI)
A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Math Concepts
Study This Topic
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →