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Texas SAE: Real Estate Investment Questions with Answers
(100% Correct Answers)
Place Lender-aquired insurance on the property and bill the borrower —ANS: If a
borrower fails to keep homeowners insurance of the collateral property, what actions
can the lender take?
Mutual Agreement —ANS: Leases my be terminated by expiration, eviction or
______?
Market Change —ANS: is a dynamic risk
5 or more —ANS: How many dwelling units does a commercial residential property
have
$11 million —ANS: the estate would need to be worth _____________ to be subject to
estate tax.
Build to suit —ANS: With this arrangement, the developer preleases to a financially
strong tenant to build a structure to the tenant's specifications. This arrangement
© 2025 All rights reserved
, 2
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.
40-100 acres and average size of 591825 sq ft —ANS: Regional shopping center lot
building size
Liquidity —ANS: the ease with which an asset can be converted into cash
Productive square feet x rental rate per square foot = gross rental rate —ANS: Formula
used to calculate gross rental income for an office building
Equity REIT —ANS: a REIT that earns income for its investors through rent collection
or the sale of the properties in their portfolio
Direct Capitalization Method —ANS: 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
Give the proceeds to the beneficiary —ANS: When a land trust expires, the trustee
must either extend the trust term or sell the real estate and ______.
© 2025 All rights reserved
Texas SAE: Real Estate Investment Questions with Answers
(100% Correct Answers)
Place Lender-aquired insurance on the property and bill the borrower —ANS: If a
borrower fails to keep homeowners insurance of the collateral property, what actions
can the lender take?
Mutual Agreement —ANS: Leases my be terminated by expiration, eviction or
______?
Market Change —ANS: is a dynamic risk
5 or more —ANS: How many dwelling units does a commercial residential property
have
$11 million —ANS: the estate would need to be worth _____________ to be subject to
estate tax.
Build to suit —ANS: With this arrangement, the developer preleases to a financially
strong tenant to build a structure to the tenant's specifications. This arrangement
© 2025 All rights reserved
, 2
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.
40-100 acres and average size of 591825 sq ft —ANS: Regional shopping center lot
building size
Liquidity —ANS: the ease with which an asset can be converted into cash
Productive square feet x rental rate per square foot = gross rental rate —ANS: Formula
used to calculate gross rental income for an office building
Equity REIT —ANS: a REIT that earns income for its investors through rent collection
or the sale of the properties in their portfolio
Direct Capitalization Method —ANS: 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
Give the proceeds to the beneficiary —ANS: When a land trust expires, the trustee
must either extend the trust term or sell the real estate and ______.
© 2025 All rights reserved
