BOMI - Asset Management Exam Practice Questions and Answers | 100% Pass

BOMI - Asset Management Exam Practice Questions and Answers | 100% Pass To garner more from the sale of the property, the asset manager is recommending to the owner that that he improve the property's urban appeal. The owner can accomplish this by doing all of the following except. A. Upgrade the landscape areas B. Ensure the lighting works C. Repaint the building D. Improve signage - Answer️️ -B. Ensure the lighting works Triana prefers the accrual basis accounting approach because it has many advantages over other approaches. These advantages include all of the following except: A. Is the simplest of the various accounting approaches B. Allows consistent performance figures between accounting periods C. Prevents large swings in net proceeds D. Avoid anomalies found with cash basis accounting - Answer️️ -A. Is the simplest of the various accounting approaches Greg is developing an asset management plan. The primary purpose of such a plan is to: A. Implement the owners objectives in the property management B. Realize an immediate positive return on investment ©SOPHIABENNETT EXAM SOLUTIONS_2024/2025 Tuesday, September 3, 2024 10:30 AM Page | 2 C. Comply with all government regulations D. Maintain the organizations market position and revenue stream - Answer️️ -A. Implement the owners objectives in property management Mark manages a property with $850,603 in gross potential income, $45,018 in operating expenses and a $72,000 vacancy loss. What is the NOI? A. $733,585 B. $778,603 C. $805,585 D. $877,585 - Answer️️ -A. $733,585 Elwood is considering a particular building for investment purposes. Since the building is 15 years old, it can be considered: A. Class A building only B. Class B building only C. Either a class A or class B building D. Neither a class A or class B building - Answer️️ -C. either a class A or class B building Overall, it is best if Barbara, an asset manager, receives her comprehensive reporting package: A. Weekly B. Monthly C. Quarterly D. Annually - Answer️️ -B. Monthly ©SOPHIABENNETT EXAM SOLUTIONS_2024/2025 Tuesday, September 3, 2024 10:30 AM Page | 3 Because of severe financial setbacks, Cesar has had his company's property foreclosed upon, The very first step in this foreclosure procedure is: A. The deed being cleared of all junior liens B. The lender assigning rents to itself C. A notice of default being sent to the recorders office D. A notice of default being given to the borrower - Answer️️ -D. A notice of default being given to the borrower Jurgen will be selling his property as-is, This means that he makes no warranties or representation about the ____________ of the property. A. Condition B. Habitability C. Potential use D. All of the above - Answer️️ -D. All of the above If Harvey is to establish the date, location, and subject of an audit, he would need to: A. Send a pre-audit letter B. Conduct a pre-audit interview C. Conduct an exit interview D. Send an audit response letter - Answer️️ -A. Send a pre-audit letter Donald is examining the factors that affect, either positive or negative, the value of the property created by leasing. These factors include all of the following except? A. Co-tenancy clauses B. Go-green clauses C. Ownership objectives ©SOPHIABENNETT EXAM SOLUTIONS_2024/2025 Tuesday, September 3, 2024 10:30 AM Page | 4 D. Creditworthiness of tenants - Answer️️ -B. Go-green clauses Janelle is a tenant representative. As such, she owes a fiduciary responsibility to: A. The owner only B. The tenant only C. Both the owner and the tenant D. Neither the owner nor the tenant - Answer️️ -B. The tenant only Jeanine wants a loan characterized by having an interest rate at a set level. This is a _________ loan. A. Fixed-rate B. Variable-rate C. Tax-exempt D. Wraparound - Answer️️ -A. Fixed-rate Magda has a 12,000 sq ft property with a current value of $2,400,000 and a net operating income of $180,000. What is its yield? A. 0.06 B. 0.065 C. 0.07 D. 0.075 - Answer️️ -D. O.075 Albert is at the last step in the ownership cycle of investment real estate, which is: A. Managing the acquisition B. overseeing property disposition C. Enhancing the value of the property D. Developing the asset plan - Answer️️ -B. Overseeing property disposition ©SOPHIABENNETT EXAM SOLUTIONS_2024/2025 Tuesday, September 3, 2024 10:30 AM Page | 5 Glenna wants to buy the property at the lowest possible price. She knows there are many factors, besides location, that affect price. Which of the following is not one of those quantifiable factors? A. Taxes B. Reputation C. Interior condition D. Operational costs and expenses - Answer️️ -B. Reputation Don, an asset manager, is selecting a property manager to mange his investment real estate. He must consider several factors when making his decision. Which of the following would likely not be one of the factors he should consider? A. Holding period B. Condition of the property C. Redevelopment D. Politics - Answer️️ -D. Politics A new auditor is slowly but methodically gathering the fate needed to conduct an audit. This process is known as: A. Aggregating B. Batching C. Sampling D. Surveying - Answer️️ -C. Sampling As an asset manager, Sharon needs to address a few factors when attempting to move towards a successful resolution for an REO property her organization has recently acquired. These factors would likely include all of the