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Texas SAE: Real Estate Investment EXAM
Questions and Answers (Verified
Answers) (Latest Update 2025) UPDATE!!
If a borrower fails to keep homeowners insurance of the collateral property, what
actions can the lender take? - (ANSWER)Place Lender-aquired insurance on the
property and bill the borrower
Leases my be terminated by expiration, eviction or ______? - (ANSWER)Mutual
Agreement
is a dynamic risk - (ANSWER)Market Change
How many dwelling units does a commercial residential property have -
(ANSWER)5 or more
the estate would need to be worth _____________ to be subject to estate tax. -
(ANSWER)$11 million
With this arrangement, the developer preleases to a financially strong tenant to
build a structure to the tenant's specifications. This arrangement assures the
tenant that they will have the space they require when needed and it assures the
owner/builder that the space will be fully leased upon completion. -
(ANSWER)Build to suit
, 2
Regional shopping center lot building size - (ANSWER)40-100 acres and average
size of 591825 sq ft
the ease with which an asset can be converted into cash - (ANSWER)Liquidity
Formula used to calculate gross rental income for an office building -
(ANSWER)Productive square feet x rental rate per square foot = gross rental rate
a REIT that earns income for its investors through rent collection or the sale of the
properties in their portfolio - (ANSWER)Equity REIT
Income
capitalization technique; value is estimated
by dividing the net operating
income by the overall capitalization rate. Coverts a single years expected income
into a market value - (ANSWER)Direct Capitalization Method
When a land trust expires, the trustee must either extend the trust term or sell
the real estate and ______. - (ANSWER)Give the proceeds to the beneficiary
the amount of money you have now - (ANSWER)Present value
A legal action to compel a party to carry out the terms of a contract. -
(ANSWER)Specific Performance
Texas SAE: Real Estate Investment EXAM
Questions and Answers (Verified
Answers) (Latest Update 2025) UPDATE!!
If a borrower fails to keep homeowners insurance of the collateral property, what
actions can the lender take? - (ANSWER)Place Lender-aquired insurance on the
property and bill the borrower
Leases my be terminated by expiration, eviction or ______? - (ANSWER)Mutual
Agreement
is a dynamic risk - (ANSWER)Market Change
How many dwelling units does a commercial residential property have -
(ANSWER)5 or more
the estate would need to be worth _____________ to be subject to estate tax. -
(ANSWER)$11 million
With this arrangement, the developer preleases to a financially strong tenant to
build a structure to the tenant's specifications. This arrangement assures the
tenant that they will have the space they require when needed and it assures the
owner/builder that the space will be fully leased upon completion. -
(ANSWER)Build to suit
, 2
Regional shopping center lot building size - (ANSWER)40-100 acres and average
size of 591825 sq ft
the ease with which an asset can be converted into cash - (ANSWER)Liquidity
Formula used to calculate gross rental income for an office building -
(ANSWER)Productive square feet x rental rate per square foot = gross rental rate
a REIT that earns income for its investors through rent collection or the sale of the
properties in their portfolio - (ANSWER)Equity REIT
Income
capitalization technique; value is estimated
by dividing the net operating
income by the overall capitalization rate. Coverts a single years expected income
into a market value - (ANSWER)Direct Capitalization Method
When a land trust expires, the trustee must either extend the trust term or sell
the real estate and ______. - (ANSWER)Give the proceeds to the beneficiary
the amount of money you have now - (ANSWER)Present value
A legal action to compel a party to carry out the terms of a contract. -
(ANSWER)Specific Performance
