VA Real Estate Express - Chapter 1 Exam Questions with complete solution

Creating real properties from raw land involves capital formation, financing, construction contracting, and regulatory approvals. The key parties involved in this aspect of the business are generally the developer, the landowner, and the mortgage lender. Also involved are market analysts, architects, engineers, space planners, interior designers, and construction subcontractors. - ANSWER-Creation and Improvement All real estate, whether raw land or improved property, must be managed and maintained. The two principal types of managers are property managers and asset managers. Property managers and their staff oversee specific properties on behalf of the owners, making sure the condition of the property and its financial performance meet specific standards. - ANSWER-Management and maintenance Demolition experts in conjunction with excavation and debris removal experts serve to remove properties that are no longer economically viable from the market. - ANSWER-Demolition A specialized niche in the real estate business is the real estate investor who risks capital in order to buy, hold, and sell real properties. In contrast to property owners whose primary interest is in some other business, the real estate investor focuses on identifying and exploiting real estate investment opportunities for profit. The real estate investor provides capital and liquidity to the real estate market. - ANSWER-Investment ownership All real estate is to some degree regulated by government. The principal areas of regulation are usage, taxation, and housing administration.