Real Estate MathIntermediateDelaware Exam

A Delaware investor purchases a rental property for $300,000 using a 75% LTV mortgage. What is the loan amount?

A$200,000
B$225,000Correct
C$250,000
D$275,000

Why $225,000 Is Correct

Answer B: $225,000

Loan amount = Purchase Price × LTV = $300,000 × 0.75 = $225,000.

Exam Tip: Real Estate Math

Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.

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