David Saks' Blog

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Industry Observer - TN LIC# 290452
David Saks is a musician, retired real estate broker, and long-time ActiveRain member. David's blog features important information relevant to the safety, integrity and security of the industry. In addition to his widely read real estate fraud blog, a comprehensive overview of real estate continuing education is a weekly addition for his subscribers and the ActiveRain community at-large. Thank you for subscribing to and for visiting David's ActiveRain home on the internet. Please join. Membership in ActiveRain will enrich your life !



                                                      What would a business be worth if it demonstrates a profit of $2,750 a month and the total earning on the investment amounts to 8% ? A. $412,500 Multiply 12 months times $2,750 to get a total profit of $33,000. Now divide the profit by the 8% ...
                                                  A property is assessed at $58,000. The school rate is $15.55 per 1000 dollars of assessed valuation. What is the amount of the school tax on the property ? A. $901.90 If the the assessed valuation is $15.55 per 1000 dollars, divide 1000 into 58,00...
                                                     A $100,000 home was insured against fire for 80% of it's value. The insurance rate was $6.00 per $1000 of value for a three year policy. What was the cost of the premium per year ? Remember to take your time. The soultion is below the wildlife ...
                                                          David bought a lot for $100,000 and sold it three years later for $130,000. His tax liability on the lot was $2,500 a year for the past three years. David also lost 2% interest on his investment each of the three years before the sale of t...
                                                       A lot with a 55 foot front and 100 feet of depth was sold for $350 per front foot. If the listing agents commission was 6% of the selling price what was her commission ? Take your time. The solution is below the wildlife photo. A. $1155 Multi...
                                                        After the owner makes the deductions for expenses of the operation of the businesshe has a net income remaining of $180,000. If he paid $2 million dollars for the business what percentage is the net income of 180k of the purchase price of 2 ...
                                                          What would be the annual interest rate on an $800,000 loan if the interest payments are $8000 per quarter against the full amount of the loan ? Take your time. The solution is below the wildlife photo. A. 4% If the 8k payments are quarterl...
                                                   At settlement on June 15, 2005 a purchaser assumes the existing mortgage 0f $450,000 which has an annual interest rate of 5% and has been paid up to December 15, 2005. How much is the pro-rated amount due at settlement? Is the pro-rated amount of...
                                                       What is the gross yearly income of a property that has six apartments, two apartments paying a monthly rental of $550 each, two apartments paying a monthly rental of $750 each, and two apartments paying a monthly rental of $900 a month each ?...
                                                    A new home and lot cost $140,000. Of this total price, the estimated value of the lot was $20,000. The owner had the property for six years. Assuming an annual depreciation of 2.5% on the house and an annual increase in value of 8% on the lot, w...

David Saks

Broker / Industry Analyst
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