FIN 3070: Midterm 1 Exam Questions With
100% Verified Answers Graded A+
Land use in US - Urban areas represent just 3% of land in the U.S.
Benefit of investing in real estate - Passive income, stable cash flow, tax
advantages, diversification, and leverage.
2008 Great Recession - Began with cheap credit and tax lending standards
that fueled a housing bubble. When the bubble burst, the banks were left holding
trillions of dollars of worthless investments in subprime mortgages.
Real Estate Investment Trust (REIT) - A company that owns, operates, or
finances income-generating real estate. Modeled after mutual funds, REITs pool
the capital of numerous investors. This makes it possible for individual investors
to earn dividends from real estate investments--without having to buy, manage,
or finance any properties themselves.
Lien Theory vs Title Theory - Lien Theory -- Legal and equitable title is held
by the borrower. A mortgage creates a lien on the property.
Title Theory -- The lender holds the legal title while the borrow is given equitable
title through a Deed of Trust.
Lien Theory States - SC, FL, LA, AR, NM, KS, ND, WI, IA, IL, IN, OH, KY, PA,
NY, NJ, DE, CT, ME
, Title Theory States - CA, NV, WA, OR, ID, UT, AZ, CO, WY, TX, NE, SD, MO,
TN, MS, GA, NC, VA, WV
Various types of liens -
Characteristics of real property - Real property cannot be moved, location
influences its value, and it has property rights attatched to it.
Fixture - Any object permanently attatched to a property by way of bolts,
screws, nails, glue, cement, or any other means. Items like chandeliers, ceiling
fans, and window treatments are generally seen as fixtures and will stay with the
house in a real estate transaction.
Interests - Anytime you have "interest" in a property, it means you have a
right to the property, whether it's through ownership or a security.
Life estate - A property that an individual owns and may use for the
duration of their lifetime. Called the life tenant, this person shares ownership of
the property with a second person. The second person is called the
remainderman and automatically receives the title to the property upon the
tenant's death.
Possessory interest vs nonpossessory interest - Possessory interest --
Occurs when the lender retains physical possession of the underlying collateral
during the term of the loan or agreement. The lender has the legal right to retain
the collateral until the obligation is retired or other conditions are satisfied. Once
the terms of the agreement are met, the debtor can take possession of the asset.
100% Verified Answers Graded A+
Land use in US - Urban areas represent just 3% of land in the U.S.
Benefit of investing in real estate - Passive income, stable cash flow, tax
advantages, diversification, and leverage.
2008 Great Recession - Began with cheap credit and tax lending standards
that fueled a housing bubble. When the bubble burst, the banks were left holding
trillions of dollars of worthless investments in subprime mortgages.
Real Estate Investment Trust (REIT) - A company that owns, operates, or
finances income-generating real estate. Modeled after mutual funds, REITs pool
the capital of numerous investors. This makes it possible for individual investors
to earn dividends from real estate investments--without having to buy, manage,
or finance any properties themselves.
Lien Theory vs Title Theory - Lien Theory -- Legal and equitable title is held
by the borrower. A mortgage creates a lien on the property.
Title Theory -- The lender holds the legal title while the borrow is given equitable
title through a Deed of Trust.
Lien Theory States - SC, FL, LA, AR, NM, KS, ND, WI, IA, IL, IN, OH, KY, PA,
NY, NJ, DE, CT, ME
, Title Theory States - CA, NV, WA, OR, ID, UT, AZ, CO, WY, TX, NE, SD, MO,
TN, MS, GA, NC, VA, WV
Various types of liens -
Characteristics of real property - Real property cannot be moved, location
influences its value, and it has property rights attatched to it.
Fixture - Any object permanently attatched to a property by way of bolts,
screws, nails, glue, cement, or any other means. Items like chandeliers, ceiling
fans, and window treatments are generally seen as fixtures and will stay with the
house in a real estate transaction.
Interests - Anytime you have "interest" in a property, it means you have a
right to the property, whether it's through ownership or a security.
Life estate - A property that an individual owns and may use for the
duration of their lifetime. Called the life tenant, this person shares ownership of
the property with a second person. The second person is called the
remainderman and automatically receives the title to the property upon the
tenant's death.
Possessory interest vs nonpossessory interest - Possessory interest --
Occurs when the lender retains physical possession of the underlying collateral
during the term of the loan or agreement. The lender has the legal right to retain
the collateral until the obligation is retired or other conditions are satisfied. Once
the terms of the agreement are met, the debtor can take possession of the asset.
