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TEXAS SAE REAL ESTATE INVESTMENT TEST FINAL
EXAM AND PRACTICE EXAM QUESTIONS 2025/ 2026
COMPLETE EXAM QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT ANSWERS)
/ALREADY GRADED A+||LATEST EXAM!!!
Steven put down $10,000 toward a property's purchase
price, financed the rest, and now has a cash flow of
$2,800 after repairs and debt service. What's his ROI?
a 21%
b 26%
c 28%
d 32% - Answer-c 28%
Return on investment or ROI = cash flow ÷ cash
investment. $2,800 ÷ $10,000 = 28%.
What's a legal agreement or promise made between two
parties?
a. A consideration
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b. A covenant
c. A handshake
d. A negotiation - Answer-b. A covenant
A legal agreement or promise made between two parties
is a covenant.
Which type of commercial property offers parking
surrounding the outside of the property, but also indoor
parking beneath the building?
a. Community shopping center
b. Neighborhood shopping center
c. Regional shopping center
d. Strip store - Answer-c. Regional shopping center
**Regional shopping centers are usually enclosed, with
stores facing inward and connected by a common
walkway. Parking is available surrounding the outside of
these centers, although some have indoor parking
beneath the building, as well.
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During the option period to renew a lease, who determines
whether the option will be exercised?
a. Either the landlord or 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. - Answer-d. The tenant
makes the decision.
**When there's an option period in play, the lease can be
renewed at the sole discretion of the tenant. The landlord
has no say in whether the option will be exercised (or not).
Gary leases a commercial building and pays all expenses
related to the building, including taxes and insurance.
Gary has a ______.
a. Gross lease
b. Net lease
c. Percentage lease
c. Sublease - Answer-b. Net lease
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**With a net lease, the tenant pays some, or all (in the
case of a triple net lease), expenses.
Which of these is a static risk?
a. A decline in economic conditions in the area
b. Change in tax code
c. Fire damaging the building
d. Market change - Answer-c. Fire damaging the building
**Static risks are those where the effect can be lessened
with insurance. This includes vandalism, theft, fire, and
accident liability.
How many dwelling units does a multi-family residential
property have?
a. Five or more
b. More than one but fewer than six
c. One to four
TEXAS SAE REAL ESTATE INVESTMENT TEST FINAL
EXAM AND PRACTICE EXAM QUESTIONS 2025/ 2026
COMPLETE EXAM QUESTIONS WITH DETAILED
VERIFIED ANSWERS (100% CORRECT ANSWERS)
/ALREADY GRADED A+||LATEST EXAM!!!
Steven put down $10,000 toward a property's purchase
price, financed the rest, and now has a cash flow of
$2,800 after repairs and debt service. What's his ROI?
a 21%
b 26%
c 28%
d 32% - Answer-c 28%
Return on investment or ROI = cash flow ÷ cash
investment. $2,800 ÷ $10,000 = 28%.
What's a legal agreement or promise made between two
parties?
a. A consideration
,2|Page
b. A covenant
c. A handshake
d. A negotiation - Answer-b. A covenant
A legal agreement or promise made between two parties
is a covenant.
Which type of commercial property offers parking
surrounding the outside of the property, but also indoor
parking beneath the building?
a. Community shopping center
b. Neighborhood shopping center
c. Regional shopping center
d. Strip store - Answer-c. Regional shopping center
**Regional shopping centers are usually enclosed, with
stores facing inward and connected by a common
walkway. Parking is available surrounding the outside of
these centers, although some have indoor parking
beneath the building, as well.
,3|Page
During the option period to renew a lease, who determines
whether the option will be exercised?
a. Either the landlord or 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. - Answer-d. The tenant
makes the decision.
**When there's an option period in play, the lease can be
renewed at the sole discretion of the tenant. The landlord
has no say in whether the option will be exercised (or not).
Gary leases a commercial building and pays all expenses
related to the building, including taxes and insurance.
Gary has a ______.
a. Gross lease
b. Net lease
c. Percentage lease
c. Sublease - Answer-b. Net lease
, 4|Page
**With a net lease, the tenant pays some, or all (in the
case of a triple net lease), expenses.
Which of these is a static risk?
a. A decline in economic conditions in the area
b. Change in tax code
c. Fire damaging the building
d. Market change - Answer-c. Fire damaging the building
**Static risks are those where the effect can be lessened
with insurance. This includes vandalism, theft, fire, and
accident liability.
How many dwelling units does a multi-family residential
property have?
a. Five or more
b. More than one but fewer than six
c. One to four
