CAPS- Certified
Apartment Portfolio
Supervisor- Module 4
Exam Questions and
Complete Solutions
Graded A+
Denning [Date] [Course title]
, What are the three things an owner will do with a property after investing in it? - Answer: Renovation,
Refinancing, Disposition
What does "due diligence" mean? - Answer: It means assessing the risk (legal, financial, safety) of
acquiring a property
How might a CAPS be involved in the due diligence process? - Answer: In smaller companies, you may
lead the evaluation and due diligence process for the owner, or In larger companies, you'll be an
important member of a larger due diligence and discovery team and be assigned certain responsibilities
in the process
How does the due diligence process differ when undertaken for property acquisition vs. annual
budgeting? - Answer: When undertaken for property acquisition, the due diligence process is carried
out within the set of investment goals a prospective buyer identifies; however, When done for annual
budgeting purposes, the process is more compact, but still done with an eye to the owner's investment
goals for that property.
What are some key due diligence processes? - Answer: Analyzing the rent roll and auditing lease files,
Reviewing service and maintenance agreements, Reviewing the service request history, Ensuring
governmental compliance, Reviewing recorded documents and litigation, Performing physical
inspections, Checking for tax issues, Reviewing insurance policies and risk management claims, List of
personal property, market study
What are key items to research when doing a regional analysis? - Answer: Zoning restrictions, rent
control, building codes and restrictions, licensing fees, infrastructure
What's the best definition of an "effective market area"? - Answer: Effective market area is best
defined by relevant competition (location, rent, age, quality and types of construction, amenities,
appearance)
What are the two things you should do in order to conduct a neighborhood analysis? - Answer: Look at
public record data and visit the neighborhood personally
When doing a neighborhood analysis, what are the three key items to research? - Answer: Changing
demographics, fluctuating real estate prices and economic forces
Apartment Portfolio
Supervisor- Module 4
Exam Questions and
Complete Solutions
Graded A+
Denning [Date] [Course title]
, What are the three things an owner will do with a property after investing in it? - Answer: Renovation,
Refinancing, Disposition
What does "due diligence" mean? - Answer: It means assessing the risk (legal, financial, safety) of
acquiring a property
How might a CAPS be involved in the due diligence process? - Answer: In smaller companies, you may
lead the evaluation and due diligence process for the owner, or In larger companies, you'll be an
important member of a larger due diligence and discovery team and be assigned certain responsibilities
in the process
How does the due diligence process differ when undertaken for property acquisition vs. annual
budgeting? - Answer: When undertaken for property acquisition, the due diligence process is carried
out within the set of investment goals a prospective buyer identifies; however, When done for annual
budgeting purposes, the process is more compact, but still done with an eye to the owner's investment
goals for that property.
What are some key due diligence processes? - Answer: Analyzing the rent roll and auditing lease files,
Reviewing service and maintenance agreements, Reviewing the service request history, Ensuring
governmental compliance, Reviewing recorded documents and litigation, Performing physical
inspections, Checking for tax issues, Reviewing insurance policies and risk management claims, List of
personal property, market study
What are key items to research when doing a regional analysis? - Answer: Zoning restrictions, rent
control, building codes and restrictions, licensing fees, infrastructure
What's the best definition of an "effective market area"? - Answer: Effective market area is best
defined by relevant competition (location, rent, age, quality and types of construction, amenities,
appearance)
What are the two things you should do in order to conduct a neighborhood analysis? - Answer: Look at
public record data and visit the neighborhood personally
When doing a neighborhood analysis, what are the three key items to research? - Answer: Changing
demographics, fluctuating real estate prices and economic forces
