Real estate Investments champions Correctly
Answered Latest Update
if you are holding undeveloped land, your goal as an investment is: - Answer -appreciation
land is referred to as _____ because it can be seen touched - Answer -tangible
Formaldehyde gas is: - Answer -Colorless
Local governments can use which of the following to enforce subdivision requirements? - Answer -Police
Power
The time limitation on deed restrictions is typically __________ due to changes that render the original
restriction irrelevant. - Answer -25-35 years
Which of the following is a rating used for investment opportunities? - Answer -All of these are ratings
used for investment opportunities
Which phase assessment defines the steps needed to clean up contaminated areas of a property? -
Answer -Phase III Assessment
The ________, authorized in 1954, was the first program of Urban Planning Assistance - Answer -
Subdivision Act
Which of the following are potentially responsible parties for clean-up costs of an environmental
problem? - Answer -The party who transported the waste
The right of ___________ includes the right to sell or mortgage property and the right to determine the
duration of the ownership term. - Answer -Disposition
from which country's laws did community property stem? - Answer -Spain
A ______ is a written instrument by which a grantor conveys an ownership interest in real property to a
grantee - Answer -Deed
Which of the following would be considered a trade fixture? - Answer -Dentist Chair
In a lease, the landlord is referred to as the __________. - Answer -Lessor
The lessee in a lease agreement is also known as the ________ - Answer -Tenant
,_____________ compensates a seller for taking a property off the market for an extended period of time
- Answer -Earnest Money
_________ is typically stated as a monthly charge to be paid by the tenant at the beginning of each
month - Answer -Rent
A(n) ________ is the legally designated person who would be entitled to receive a deceased person's
property in absence of a will. - Answer -Heir
Profit realized in the sale, exchange or disposition of a capital asset is considered ___________. - Answer
-Capital Gain Income
In determining capital gains on inherited property, the basis of value generally becomes market value as
of
______________. - Answer -The date of the decedent's death
In terms of qualifying for low-income housing tax credits, __________ means the initial lease term
extends to
6 months or more. - Answer -Nontransient
The gross rent charged to a tenant living in low-income housing cannot exceed ____% of the qualifying
income level for the tenant's family size - Answer -30
Which of the following costs of the principal residence can a homeowner deduct from ordinary taxable
income? - Answer -All of these costs are allowable tax deductions
The IRS defines a(n) _________ as one in which the taxpayer receives at least one payment after the year
of
sale. - Answer -Installment Sale
__________ is also known as earned income. - Answer -Active
The main difference between a commercial loan and a residential loan is that the lender and investor
expect the ___________ to repay the commercial loan. - Answer -Property being acquired
A(n) ________ permits the lender to share in all the benefits derived from the property - Answer -Equity
participation
The "banker's rate" considers a day _____ of the annual rate. - Answer -1/360
The Truth-in-Lending Act is implemented by _________ - Answer -Regulation Z
,A consortium of people or institutions that come together to share funding and/or expertise in a
particular
business endeavor, often real estate investment, is called a ____________ - Answer -Syndicate
For tax purposes, a dwelling may be a(n): - Answer -Mobile home, house, boat, all of these
How much does the handicap exception allow a taxpayer to deduct per year? - Answer -up to $25,000
All taxable income of a sole proprietorship must be reported as part of the individual owner's income or
loss on Schedule C, Form ___________, "Profit (or Loss) from Business or Profession" of the federal tax
forms - Answer -1040
Which of the following is an item commonly reported on Schedule K? - Answer -Net Self-employment
income, ordinary income, ordinary loss.
A _____________ details the assets and liabilities of a person or business at a particular point in time. -
Answer -Balance Sheet
The _________ to appraisal estimates a property's value based on the income derived from it. - Answer -
Income Approach
The three basic financial statements covered in Chapter 11 of the text are the balance sheet, the profit-
and statement, and the - Answer -Operating statement
__________ expenses remain stable regardless of occupancy. - Answer -fixed
The maximum income that a property can be expected to produce at full occupancy is referred to as -
Answer -The maximum income expected of a property at full occupancy is variously called all of these
Which of the following is a category in which depreciation can be found? - Answer -Depreciation can be
found in all of these categories
Which appraisal approach to value concentrates on the sales prices of similar properties? - Answer -
Market approach
The ____________is the sum of operating expenses and annual debt service divided by the property's
potential gross income. - Answer -Breakeven ratio
The _________ ratio compares the total investment in the property with the NOI. - Answer -Profitability
The ______ value of an investment is the current value grown at some predetermined interest rate for a
set
period of time. - Answer -Future
, How is equity calculated in a cash flow projection? - Answer -Subtracting the first mortgage and second
mortgages from the purchase price
According to Chapter 14, __________ are the most important considerations in evaluation an
investment. - Answer -Cash Flow
the ___________ is the discount rate that forces the NPV to zero. - Answer -IRR
Which of the following is NOT an annuity? - Answer -Varying rental payments
The __________ is calculated by dividing the Net Operating Income by the Purchase Price. - Answer -
Cost of sale
Dividing the Gross Scheduled Income into the Purchase Price gives you the _________ - Answer -Gross
Rent Multiplier
For single cash flows, the present value is the ___________ the future value. - Answer -Inverse of
Calculate the cap rate for a $750,000 property with an NOI of $80,000 - Answer -10.7%
The Act that attempts to remove barriers of access to public facilities for disabled individuals is the -
Answer -Americans with Disabilities Act
The type of lease in which the tenant pays for rent, maintenance and operating expenses of the premises
is
the _________ lease. - Answer -Net lease
Which of the following does NOT determine the trade area of a retail store center? - Answer -Drawing a
circle around an area on a map
Which of the following is an exception to the handicapped provision? - Answer -A dangerous drug-
addicted tenant
According to the text, which of the following is not considered a utility? - Answer -WIFI
According to the text, which of the following is not considered a utility? - Answer -All of these are
included in the ADA, Day Care, Grocery Store, Hotels
The term lease is also called the ____________ - Answer -Gross lease
_______ allows land developers access to temporary borrowed funds to build homes until permanent
financing can be arranged. - Answer -Gap financing
The normal ratio between the net and gross leasable areas holds that ____% of the total area is usable
for
Answered Latest Update
if you are holding undeveloped land, your goal as an investment is: - Answer -appreciation
land is referred to as _____ because it can be seen touched - Answer -tangible
Formaldehyde gas is: - Answer -Colorless
Local governments can use which of the following to enforce subdivision requirements? - Answer -Police
Power
The time limitation on deed restrictions is typically __________ due to changes that render the original
restriction irrelevant. - Answer -25-35 years
Which of the following is a rating used for investment opportunities? - Answer -All of these are ratings
used for investment opportunities
Which phase assessment defines the steps needed to clean up contaminated areas of a property? -
Answer -Phase III Assessment
The ________, authorized in 1954, was the first program of Urban Planning Assistance - Answer -
Subdivision Act
Which of the following are potentially responsible parties for clean-up costs of an environmental
problem? - Answer -The party who transported the waste
The right of ___________ includes the right to sell or mortgage property and the right to determine the
duration of the ownership term. - Answer -Disposition
from which country's laws did community property stem? - Answer -Spain
A ______ is a written instrument by which a grantor conveys an ownership interest in real property to a
grantee - Answer -Deed
Which of the following would be considered a trade fixture? - Answer -Dentist Chair
In a lease, the landlord is referred to as the __________. - Answer -Lessor
The lessee in a lease agreement is also known as the ________ - Answer -Tenant
,_____________ compensates a seller for taking a property off the market for an extended period of time
- Answer -Earnest Money
_________ is typically stated as a monthly charge to be paid by the tenant at the beginning of each
month - Answer -Rent
A(n) ________ is the legally designated person who would be entitled to receive a deceased person's
property in absence of a will. - Answer -Heir
Profit realized in the sale, exchange or disposition of a capital asset is considered ___________. - Answer
-Capital Gain Income
In determining capital gains on inherited property, the basis of value generally becomes market value as
of
______________. - Answer -The date of the decedent's death
In terms of qualifying for low-income housing tax credits, __________ means the initial lease term
extends to
6 months or more. - Answer -Nontransient
The gross rent charged to a tenant living in low-income housing cannot exceed ____% of the qualifying
income level for the tenant's family size - Answer -30
Which of the following costs of the principal residence can a homeowner deduct from ordinary taxable
income? - Answer -All of these costs are allowable tax deductions
The IRS defines a(n) _________ as one in which the taxpayer receives at least one payment after the year
of
sale. - Answer -Installment Sale
__________ is also known as earned income. - Answer -Active
The main difference between a commercial loan and a residential loan is that the lender and investor
expect the ___________ to repay the commercial loan. - Answer -Property being acquired
A(n) ________ permits the lender to share in all the benefits derived from the property - Answer -Equity
participation
The "banker's rate" considers a day _____ of the annual rate. - Answer -1/360
The Truth-in-Lending Act is implemented by _________ - Answer -Regulation Z
,A consortium of people or institutions that come together to share funding and/or expertise in a
particular
business endeavor, often real estate investment, is called a ____________ - Answer -Syndicate
For tax purposes, a dwelling may be a(n): - Answer -Mobile home, house, boat, all of these
How much does the handicap exception allow a taxpayer to deduct per year? - Answer -up to $25,000
All taxable income of a sole proprietorship must be reported as part of the individual owner's income or
loss on Schedule C, Form ___________, "Profit (or Loss) from Business or Profession" of the federal tax
forms - Answer -1040
Which of the following is an item commonly reported on Schedule K? - Answer -Net Self-employment
income, ordinary income, ordinary loss.
A _____________ details the assets and liabilities of a person or business at a particular point in time. -
Answer -Balance Sheet
The _________ to appraisal estimates a property's value based on the income derived from it. - Answer -
Income Approach
The three basic financial statements covered in Chapter 11 of the text are the balance sheet, the profit-
and statement, and the - Answer -Operating statement
__________ expenses remain stable regardless of occupancy. - Answer -fixed
The maximum income that a property can be expected to produce at full occupancy is referred to as -
Answer -The maximum income expected of a property at full occupancy is variously called all of these
Which of the following is a category in which depreciation can be found? - Answer -Depreciation can be
found in all of these categories
Which appraisal approach to value concentrates on the sales prices of similar properties? - Answer -
Market approach
The ____________is the sum of operating expenses and annual debt service divided by the property's
potential gross income. - Answer -Breakeven ratio
The _________ ratio compares the total investment in the property with the NOI. - Answer -Profitability
The ______ value of an investment is the current value grown at some predetermined interest rate for a
set
period of time. - Answer -Future
, How is equity calculated in a cash flow projection? - Answer -Subtracting the first mortgage and second
mortgages from the purchase price
According to Chapter 14, __________ are the most important considerations in evaluation an
investment. - Answer -Cash Flow
the ___________ is the discount rate that forces the NPV to zero. - Answer -IRR
Which of the following is NOT an annuity? - Answer -Varying rental payments
The __________ is calculated by dividing the Net Operating Income by the Purchase Price. - Answer -
Cost of sale
Dividing the Gross Scheduled Income into the Purchase Price gives you the _________ - Answer -Gross
Rent Multiplier
For single cash flows, the present value is the ___________ the future value. - Answer -Inverse of
Calculate the cap rate for a $750,000 property with an NOI of $80,000 - Answer -10.7%
The Act that attempts to remove barriers of access to public facilities for disabled individuals is the -
Answer -Americans with Disabilities Act
The type of lease in which the tenant pays for rent, maintenance and operating expenses of the premises
is
the _________ lease. - Answer -Net lease
Which of the following does NOT determine the trade area of a retail store center? - Answer -Drawing a
circle around an area on a map
Which of the following is an exception to the handicapped provision? - Answer -A dangerous drug-
addicted tenant
According to the text, which of the following is not considered a utility? - Answer -WIFI
According to the text, which of the following is not considered a utility? - Answer -All of these are
included in the ADA, Day Care, Grocery Store, Hotels
The term lease is also called the ____________ - Answer -Gross lease
_______ allows land developers access to temporary borrowed funds to build homes until permanent
financing can be arranged. - Answer -Gap financing
The normal ratio between the net and gross leasable areas holds that ____% of the total area is usable
for
