IAAO COURSE 102- REVIEW
QUESTIONS AND ANSWERS
Anticipation - ans- sw sw
Value is created by the expectation of benefits to be derived in the future.
sw sw sw sw sw sw sw sw sw sw sw sw sw
Leverage - ans- sw sw
The borrowing of funds in hopes of earning a greater return than the cost of the borrowed f
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
unds.
Chattel mortgage - ans-A mortgage only on persona property
sw sw sw sw sw sw sw sw
Yo - ans-Also known as the discount rate, reflects the return on investment.
sw sw sw sw sw sw sw sw sw sw sw sw
Safe rate - ans- sw sw sw
Base rate on the safest investments such as government insured investments (Yo).
sw sw sw sw sw sw sw sw sw sw sw
Risk rate - ans- sw sw sw
An amount in addition to the safe rate which compensates the investor for the degree of ris
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
k in the investment (Yo).
sw sw sw sw
Rate for non-liquidity - ans-
sw sw sw sw
An amount in addition to the safe rate and the risk rate which compensates the investor for
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw s
the time necessary to convert the real estate into cash (Yo).
w sw sw sw sw sw sw sw sw sw sw
Rate for management - ans-
sw sw sw sw
An amount in addition to the safe rate, risk rate, and rate for non-
sw sw sw sw sw sw sw sw sw sw sw sw sw
liquidity which compensates the investor for the decision making process to manage the r
sw sw sw sw sw sw sw sw sw sw sw sw sw
eal estate investment. (Yo)
sw sw sw
Recapture rate - ans- sw sw sw
Provides for the return of the investment in the wasting portion of the asset.
sw sw sw sw sw sw sw sw sw sw sw sw sw
Effective tax rate (ETR) - ans- sw sw sw sw sw
Reflects the relationship between the real estate taxes and the value of the property.
sw sw sw sw sw sw sw sw sw sw sw sw sw
IRV - ans-Income, value, rate
sw sw sw sw
VIF - ans-Income, value, factor
sw sw sw sw
QUESTIONS AND ANSWERS
Anticipation - ans- sw sw
Value is created by the expectation of benefits to be derived in the future.
sw sw sw sw sw sw sw sw sw sw sw sw sw
Leverage - ans- sw sw
The borrowing of funds in hopes of earning a greater return than the cost of the borrowed f
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
unds.
Chattel mortgage - ans-A mortgage only on persona property
sw sw sw sw sw sw sw sw
Yo - ans-Also known as the discount rate, reflects the return on investment.
sw sw sw sw sw sw sw sw sw sw sw sw
Safe rate - ans- sw sw sw
Base rate on the safest investments such as government insured investments (Yo).
sw sw sw sw sw sw sw sw sw sw sw
Risk rate - ans- sw sw sw
An amount in addition to the safe rate which compensates the investor for the degree of ris
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw
k in the investment (Yo).
sw sw sw sw
Rate for non-liquidity - ans-
sw sw sw sw
An amount in addition to the safe rate and the risk rate which compensates the investor for
sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw sw s
the time necessary to convert the real estate into cash (Yo).
w sw sw sw sw sw sw sw sw sw sw
Rate for management - ans-
sw sw sw sw
An amount in addition to the safe rate, risk rate, and rate for non-
sw sw sw sw sw sw sw sw sw sw sw sw sw
liquidity which compensates the investor for the decision making process to manage the r
sw sw sw sw sw sw sw sw sw sw sw sw sw
eal estate investment. (Yo)
sw sw sw
Recapture rate - ans- sw sw sw
Provides for the return of the investment in the wasting portion of the asset.
sw sw sw sw sw sw sw sw sw sw sw sw sw
Effective tax rate (ETR) - ans- sw sw sw sw sw
Reflects the relationship between the real estate taxes and the value of the property.
sw sw sw sw sw sw sw sw sw sw sw sw sw
IRV - ans-Income, value, rate
sw sw sw sw
VIF - ans-Income, value, factor
sw sw sw sw
