5/16/25, 8:31 AM TEXAS SAE REAL ESTATE INVESTMENT EXAM 2025 | ALL QUESTIONS AND CORRECT ANSWERS WITH EXPLANATIONS | …
TEXAS SAE REAL ESTATE INVESTMENT EXAM
2025 | ALL QUESTIONS AND CORRECT ANSWERS
WITH EXPLANATIONS | GRADED A+ | VERIFIED
ANSWERS | LATEST VERSION |NEWEST VERSION
Steven put down $10,000 c 28%
toward a property's
purchase price, financed Return on investment or ROI = cash flow ÷ cash
the rest, and now has a investment. $2,800 ÷ $10,000 = 28%.
cash flow of $2,800 after
repairs and debt service.
What's his ROI?
a 21%
b 26%
c 28%
d 32%
-… 1/33
,5/16/25, 8:31 AM TEXAS SAE REAL ESTATE INVESTMENT EXAM 2025 | ALL QUESTIONS AND CORRECT ANSWERS WITH EXPLANATIONS | …
What's a legal agreement b. A covenant
or promise made between
two parties? A legal agreement or promise made between two
parties is a covenant.
a. A consideration
b. A covenant
c. A handshake
d. A negotiation
Which type of commercial c. Regional shopping center
property offers parking
surrounding the outside of **Regional shopping centers are usually enclosed,
the property, but also with stores facing inward and connected by a
indoor parking beneath common walkway. Parking is available surrounding the
the building? outside of these centers, although some have indoor
parking beneath the building, as well.
a. Community shopping
center
b. Neighborhood
shopping center
c. Regional shopping
center
d. Strip store
-… 2/33
,5/16/25, 8:31 AM TEXAS SAE REAL ESTATE INVESTMENT EXAM 2025 | ALL QUESTIONS AND CORRECT ANSWERS WITH EXPLANATIONS | …
During the option period d. The tenant makes the decision.
to renew a lease, who
determines whether the **When there's an option period in play, the lease can
option will be exercised? be renewed at the sole discretion of the tenant. The
landlord has no say in whether the option will be
a. Either the landlord or exercised (or not).
the tenant can make the
decision.
b. It must be mutually
agreed to by both the
landlord and the tenant.
c. The landlord makes the
decision.
d. The tenant makes the
decision.
Gary leases a commercial b. Net lease
building and pays all
expenses related to the **With a net lease, the tenant pays some, or all (in the
building, including taxes case of a triple net lease), expenses.
and insurance. Gary has a
______.
a. Gross lease
b. Net lease
c. Percentage lease
c. Sublease
Which of these is a static c. Fire damaging the building
risk?
**Static risks are those where the effect can be
a. A decline in economic lessened with insurance. This includes vandalism, theft,
conditions in the area fire, and accident liability.
b. Change in tax code
c. Fire damaging the
building
d. Market change
-… 3/33
, 5/16/25, 8:31 AM TEXAS SAE REAL ESTATE INVESTMENT EXAM 2025 | ALL QUESTIONS AND CORRECT ANSWERS WITH EXPLANATIONS | …
How many dwelling units d. Two or more
does a multi-family
residential property have? **A multi-family residential property has two or more
dwelling units.
a. Five or more
b. More than one but
fewer than six
c. One to four
d. Two or more
Which REIT type b. Equity
specializes in owning
certain building types, **Equity REITs invest in specific building types, such as
such as apartments or apartments, shopping malls, self-storage facilities,
office buildings? office buildings, and hotels.
a. Commercial cap
b. Equity
c. REMTs
d. Tax-deferred
Victims of fair housing d. Two years
discrimination can seek
redress in federal court. **Victims may seek redress in federal court within two
Within how many years of years of the alleged violation. There is no limit on the
the alleged violation do amount of punitive damages that may be awarded to
they have to do so? a victim in federal court.
a. Four years
b. One year
c. Three years
d. Two years
-… 4/33
TEXAS SAE REAL ESTATE INVESTMENT EXAM
2025 | ALL QUESTIONS AND CORRECT ANSWERS
WITH EXPLANATIONS | GRADED A+ | VERIFIED
ANSWERS | LATEST VERSION |NEWEST VERSION
Steven put down $10,000 c 28%
toward a property's
purchase price, financed Return on investment or ROI = cash flow ÷ cash
the rest, and now has a investment. $2,800 ÷ $10,000 = 28%.
cash flow of $2,800 after
repairs and debt service.
What's his ROI?
a 21%
b 26%
c 28%
d 32%
-… 1/33
,5/16/25, 8:31 AM TEXAS SAE REAL ESTATE INVESTMENT EXAM 2025 | ALL QUESTIONS AND CORRECT ANSWERS WITH EXPLANATIONS | …
What's a legal agreement b. A covenant
or promise made between
two parties? A legal agreement or promise made between two
parties is a covenant.
a. A consideration
b. A covenant
c. A handshake
d. A negotiation
Which type of commercial c. Regional shopping center
property offers parking
surrounding the outside of **Regional shopping centers are usually enclosed,
the property, but also with stores facing inward and connected by a
indoor parking beneath common walkway. Parking is available surrounding the
the building? outside of these centers, although some have indoor
parking beneath the building, as well.
a. Community shopping
center
b. Neighborhood
shopping center
c. Regional shopping
center
d. Strip store
-… 2/33
,5/16/25, 8:31 AM TEXAS SAE REAL ESTATE INVESTMENT EXAM 2025 | ALL QUESTIONS AND CORRECT ANSWERS WITH EXPLANATIONS | …
During the option period d. The tenant makes the decision.
to renew a lease, who
determines whether the **When there's an option period in play, the lease can
option will be exercised? be renewed at the sole discretion of the tenant. The
landlord has no say in whether the option will be
a. Either the landlord or exercised (or not).
the tenant can make the
decision.
b. It must be mutually
agreed to by both the
landlord and the tenant.
c. The landlord makes the
decision.
d. The tenant makes the
decision.
Gary leases a commercial b. Net lease
building and pays all
expenses related to the **With a net lease, the tenant pays some, or all (in the
building, including taxes case of a triple net lease), expenses.
and insurance. Gary has a
______.
a. Gross lease
b. Net lease
c. Percentage lease
c. Sublease
Which of these is a static c. Fire damaging the building
risk?
**Static risks are those where the effect can be
a. A decline in economic lessened with insurance. This includes vandalism, theft,
conditions in the area fire, and accident liability.
b. Change in tax code
c. Fire damaging the
building
d. Market change
-… 3/33
, 5/16/25, 8:31 AM TEXAS SAE REAL ESTATE INVESTMENT EXAM 2025 | ALL QUESTIONS AND CORRECT ANSWERS WITH EXPLANATIONS | …
How many dwelling units d. Two or more
does a multi-family
residential property have? **A multi-family residential property has two or more
dwelling units.
a. Five or more
b. More than one but
fewer than six
c. One to four
d. Two or more
Which REIT type b. Equity
specializes in owning
certain building types, **Equity REITs invest in specific building types, such as
such as apartments or apartments, shopping malls, self-storage facilities,
office buildings? office buildings, and hotels.
a. Commercial cap
b. Equity
c. REMTs
d. Tax-deferred
Victims of fair housing d. Two years
discrimination can seek
redress in federal court. **Victims may seek redress in federal court within two
Within how many years of years of the alleged violation. There is no limit on the
the alleged violation do amount of punitive damages that may be awarded to
they have to do so? a victim in federal court.
a. Four years
b. One year
c. Three years
d. Two years
-… 4/33
