Aceable Agent Principles of Real Estate II Level 6 Real Estate Investments Summary Exam Questions with 100% Correct Answers

Aceable Agent Principles of Real Estate II Level 6 Real Estate Investments Summary Exam Questions with 100% Correct Answers Appreciation - answerThe increase in the value of a property is called _______. Operating Statement - answerAn _______ is used to determine the cash flow potential of a property. Risk - answer_______ is the potential for loss or an undesired outcome. After-tax Cash Flow - answerThe_______ is the bottom-line statistic provided by an operating statement. Real Estate Investment Trust - answerThe investor in a _______ enjoys greater liquidity thaan if they owned the property directly. Joint Venture - answerMembers of a _______ retain their individual identities outside of this one undertaking. Capital Gains - answerThe tax benefits of _______ versus ordinary income is one of the incentives to invest in real estate. Section 1031 Exchange - answerWhen investors sell a property and wish to defer payment of capital gain taxes on that sale, they can do so via a _______. Real Estate Mortgage Investment Conduit (REMIC) - answerA _______ allows individuals to indirectly invest in mortgages through the purchase of securities. Depreciation - answerThe reduction in the value of a property over time is known as _______. Feasibility Study - answerA _______ is a detailed analysis of the viability of an idea or undertaking. Limited Partnership - answerA _______ must have one or more general partners with unlimited liability. Leverage - answerThe investment strategy of taking on debt in order to realize a greater return is called _______ Debt Service - answer_______ is the money necessary to make payments on the principleand interest of a loa