FL Real Estate Brokers Exam with 100% correct answers.

A tax shelter is ? the excess of cash flow over taxable income. Pooling of funds of several lenders to make a single loan is ? mortgage participation In a tax deferred exchange "boot' is the ? taxable unlike property. The ability of a comapany to meet its short term obligations is expressed by the? quick ratio. Which is a residual concept? highest and best use An investor is going to restore and old Victorian home. The lender wants to know what its value will be after restoration. The appraiser should use ? reproduction cost The sequence of dollar adjustments in the comparable sales approach: is financing terms, location, and physical In calculating taxable income an investor may NOT deduct? capital improvements In the appraisal process which is a basic step in the cost approach? compute value of site as if vacant An income property financial analysis would NOT normally analyzed the: equity build-up The adjusted balance sheet includes: tangible assests The financial statements that restates the owner's equity in terms of tangible assets at market values is the : market balance sheet In using comparables it is a good idea to verify the sale. A good source of verification would NOT be? neighbors The cost depreciation approach would NOT consider: (ACRS) accelerated cost recover system To be defendable, and estimate of highest and best use is NOT required to: produce the highest residual income to the building. An example of functional obsolescence would be? not enough electrical outlets Economic obsolescence may NOT be? physical deterioration An investor has the right to expect? A return on an investment. A return of loss of value of the asset. A return of the investment. The effective gross income is : economic rent minus vacancy and collection. The steps in the income capitalization approach would NOT include? estimate debt service The interest rate given on a mortage may be NOT affected by? borrower's age An example of an arms-lenth transaction would be? Mr. Black to Mrs.Jones (NOT RELATED) The appraisal REPORT which states the appraiser's conclusions without typically giving the descriptive information to support the valuation process is a/an? restricted REPORT What statment is NOT correct regarding income tax deductions? up to 3 years prepaid interest may be deducted from earned income The RENT called for in a lease is ? contract RENT The seller could get a current tax deduction for rent paid by utilizing a ? sale-leaseback Dynamic risk is ? the risk associated with the changes in general business conditions The VALUE of a business which reflects the fact that it is worth more than the sum of the VALUES of its individual assets is termed? going concern VALUE In a (SAM)-shared appreciation mortgage, the lender charges a below-market interest rate but shares in the property's sale proceeds at time of sale or upon maturity of the loan if the: sale price or value is higher than the purchase price. Under what circumstances may a FL, broker maintain an office in another state? only if he signs an affidavit allowing the DBPR to cunduct and investigation, if necessary, and the broker would not interfere with the investigation. In installment sales, up to what maximum percentage of the sale price can be recived for realized gain not to be included in taxable income untill cash is recieved? any percentage is allowed. To check for encroachments on a property, a buyer would obtain ? a survey Which expenses are allowed as a deduction on a homeowner's tax return? mortgage interest and real estate taxes An environmental site assessment involving field testing and analysis such as testing underground storage tanks would be a phase? phase Two Leverage in real estate: can either increase or decrease yield Figuring tax depreciation would NOT consider? reproduction cost How long would a buyer of a condominium have to cancel the contract? 3 days from receipt of the condo documents on a resale 15 days on the purchase of a new condo from the developer The best order for making adjustments in the market approach to appraising would be? financing, time, locational differences, physical characteristics Advantages of investing in income-producing real estate would NOT include? liqudity In direct capitalization, an overall capitalization rate is ? divided into the annual net operating income The steps used in the cost-depreciation approach do NOT include? sales prices of comparable structures are adjusted to reflect the characteristics of the subject property. An improved site is valued as though it were vacant and available to be put to its highest and best use because? a site's use always has the potential of being changed to its most profitable use. The cost-depreciation approach would most appropriately be used to appraise a/an? new tract housing