Real Estate U Final EXAM LATEST 2023-
p p p p p p
2024 ACTUAL EXAM 350 QUESTIONS AND COR
p p p p p p p
RECT DETAILED ANSWERS (VERIFIED ANSWER
p p p p
S) |ALREADY GRADED A+ TESTBANK
p p p p
Syndication - p
pCORRECT ANSWER Method of using capital (money) fro p p p p p p p
m multiple investors for the common goal of acquiring real es
p p p p p p p p p p
tate. Investments are often syndicated in order to allow indivi
p p p p p p p p p
duals to invest in properties or projects that are significantly l
p p p p p p p p p p
arger than they could afford on their own.
p p p p p p p
Types of Commercial Real Estate
p p p p
Note: Commercial RE boils down to figuring out what is the I
p p p p p p p p p p p
ncome-
expense=NOI and what valuation points are assigned to the
p p p p p p p p p p
cap rate. p
ASK: What is the cap rate of this property? -
p p p p p p p p p
Apply to NOI the cap rate to get the value of the property -
p p p p p p p p p p p p p p
CORRECT ANSWER 1) Apartment Buildings
p p p p p
2) Office Buildings (Class A,B,C) p p p
3) Shopping Centers p
4) Industrial Properties p
Office Buildings Classes -
p p p
CORRECT ANSWER (Class A,B,C)
p p p p
,A- Newer building, all amenities
p p p p
B- Older building, not that great condition
p p p p p p
C- Right above failing grade
p p p p
-Low Rise ( 1-3 stories)
p p p p
-Mid Rise ( 3-15 stories)
p p p p
-High Rise ( 20+ stories)
p p p p
Types of Residential Real Estate - CORRECT ANSWER
p p p p p p p
- Single Family p
- Multi-family
- Commercial apt building (5+ dwelling units) p p p p p
- Mixed use buildings- p p
typically downstairs: retail , upstairs: apt
p p p p p p
Retail Property Types - CORRECT ANSWER -
p p p p p p
Strip centers (8,000 - 30,000 sq feet)
p p p p p p p
- Neighborhood centers (30,000-100,000 sq feet) p p p p
- Malls: Regional or Mega mall p p p p
- Outlet centers (100-000 - 300,000 sq ft)
p p p p p p
depends on how many big national centers are at the mall.
p p p p p p p p p p
Outparcel - p
CORRECT ANSWER Individual retail sites in a shopping c
p p p p p p p p p
enter
Square Footage Types p p
Note: Carpetable area= Usable area -
p p p p p
CORRECT ANSWER Usable Square Footage: Space that
p p p p p p p p
can be used/occupied by a tenant.
p p p p p
,- Typically doesn't include elevators, stairs, mechanical s p p p p p p
paces, etc. p
Rentable Square Footage: Usable area that can be leased/r
p p p p p p p p
ented to a tenant p p p
Common area: Spaces in a commercial building shared by the tp p p p p p p p p p
enants or residents of the building. Common areas include lobb
p p p p p p p p p
ies, corridors, stairs, elevators, etc.
p p p p
Net lease (Commercial RE) -
p p p p
pCORRECT ANSWER Requires tenant to pay. In addition to p p p p p p p p
prent , some or all of the property expenses that's normally pa
p p p p p p p p p p p
id by the property owner.
p p p p
N lease: Tenant responsible for RE taxes only, while ownerp
p p p p p p p p p p
says rest of expenses p p p
NN lease (Double Net Lease): Tenant pays both property tax
p p p p p p p p p
es & premiums for insuring the property
p p p p p p
NNN Lease (Triple Net Lease): Tenant pays for all expenses
p p p p p p p p p
like RE taxes, insurance, maintenance, repairs, utilities etc.
p p p p p p p p
Gross Lease - p p
CORRECT ANSWER Lease of property whereby the lesso
p p p p p p p p
r is to meet all property charges regularly incurred through o
p p p p p p p p p p
wnership.
- tenant pays a fixed rent per sq ft they get to use, but not pa
p p p p p p p p p p p p p p
ying any expenses of operating the property
p p p p p p
, Percentage Lease p
* Commonly found in Retail leases -
p p p p p p
CORRECT ANSWER Lease of property which rental is ba
p p p p p p p p p
sed upon p
% of the volume of sales made upon the leased premises, us
p p p p p p p p p p p
ual provised for minimal rentals
p p p p
- having this type of lease requires tenant to share p
p p p p p p p p p
erformance of the store with landlord p p p p p
Simple: tenant pays owner a certain % of the revenue he ma
p p p p p p p p p p p
kes on the property p p p
Loft Lease - p p
CORRECT ANSWER Renting out an entire space/floor
p p p p p p p
Lease Clauses - CORRECT ANSWER 1. Lease duration
p p p p p p p
- commencement date (day that lease starts) p p p p p
- move-in date p
2. Free rent clause p p
3. Landlord work clause (work done on property prior to te p p p p p p p p p
nant move-in) p
4. Tenant's future work clause p p p
5. Notice clause p
6. Tenant options (tenant has right to chooses to extend th
p p p p p p p p p
eir lease into the additional option period)
p p p p p p
7. Restrictions on who landlord can rent the other spaces to p p p p p p p p p
8. Management level p
9. Amenities
10. Use clauses p
11. Estoppel agreement p
p p p p p p
2024 ACTUAL EXAM 350 QUESTIONS AND COR
p p p p p p p
RECT DETAILED ANSWERS (VERIFIED ANSWER
p p p p
S) |ALREADY GRADED A+ TESTBANK
p p p p
Syndication - p
pCORRECT ANSWER Method of using capital (money) fro p p p p p p p
m multiple investors for the common goal of acquiring real es
p p p p p p p p p p
tate. Investments are often syndicated in order to allow indivi
p p p p p p p p p
duals to invest in properties or projects that are significantly l
p p p p p p p p p p
arger than they could afford on their own.
p p p p p p p
Types of Commercial Real Estate
p p p p
Note: Commercial RE boils down to figuring out what is the I
p p p p p p p p p p p
ncome-
expense=NOI and what valuation points are assigned to the
p p p p p p p p p p
cap rate. p
ASK: What is the cap rate of this property? -
p p p p p p p p p
Apply to NOI the cap rate to get the value of the property -
p p p p p p p p p p p p p p
CORRECT ANSWER 1) Apartment Buildings
p p p p p
2) Office Buildings (Class A,B,C) p p p
3) Shopping Centers p
4) Industrial Properties p
Office Buildings Classes -
p p p
CORRECT ANSWER (Class A,B,C)
p p p p
,A- Newer building, all amenities
p p p p
B- Older building, not that great condition
p p p p p p
C- Right above failing grade
p p p p
-Low Rise ( 1-3 stories)
p p p p
-Mid Rise ( 3-15 stories)
p p p p
-High Rise ( 20+ stories)
p p p p
Types of Residential Real Estate - CORRECT ANSWER
p p p p p p p
- Single Family p
- Multi-family
- Commercial apt building (5+ dwelling units) p p p p p
- Mixed use buildings- p p
typically downstairs: retail , upstairs: apt
p p p p p p
Retail Property Types - CORRECT ANSWER -
p p p p p p
Strip centers (8,000 - 30,000 sq feet)
p p p p p p p
- Neighborhood centers (30,000-100,000 sq feet) p p p p
- Malls: Regional or Mega mall p p p p
- Outlet centers (100-000 - 300,000 sq ft)
p p p p p p
depends on how many big national centers are at the mall.
p p p p p p p p p p
Outparcel - p
CORRECT ANSWER Individual retail sites in a shopping c
p p p p p p p p p
enter
Square Footage Types p p
Note: Carpetable area= Usable area -
p p p p p
CORRECT ANSWER Usable Square Footage: Space that
p p p p p p p p
can be used/occupied by a tenant.
p p p p p
,- Typically doesn't include elevators, stairs, mechanical s p p p p p p
paces, etc. p
Rentable Square Footage: Usable area that can be leased/r
p p p p p p p p
ented to a tenant p p p
Common area: Spaces in a commercial building shared by the tp p p p p p p p p p
enants or residents of the building. Common areas include lobb
p p p p p p p p p
ies, corridors, stairs, elevators, etc.
p p p p
Net lease (Commercial RE) -
p p p p
pCORRECT ANSWER Requires tenant to pay. In addition to p p p p p p p p
prent , some or all of the property expenses that's normally pa
p p p p p p p p p p p
id by the property owner.
p p p p
N lease: Tenant responsible for RE taxes only, while ownerp
p p p p p p p p p p
says rest of expenses p p p
NN lease (Double Net Lease): Tenant pays both property tax
p p p p p p p p p
es & premiums for insuring the property
p p p p p p
NNN Lease (Triple Net Lease): Tenant pays for all expenses
p p p p p p p p p
like RE taxes, insurance, maintenance, repairs, utilities etc.
p p p p p p p p
Gross Lease - p p
CORRECT ANSWER Lease of property whereby the lesso
p p p p p p p p
r is to meet all property charges regularly incurred through o
p p p p p p p p p p
wnership.
- tenant pays a fixed rent per sq ft they get to use, but not pa
p p p p p p p p p p p p p p
ying any expenses of operating the property
p p p p p p
, Percentage Lease p
* Commonly found in Retail leases -
p p p p p p
CORRECT ANSWER Lease of property which rental is ba
p p p p p p p p p
sed upon p
% of the volume of sales made upon the leased premises, us
p p p p p p p p p p p
ual provised for minimal rentals
p p p p
- having this type of lease requires tenant to share p
p p p p p p p p p
erformance of the store with landlord p p p p p
Simple: tenant pays owner a certain % of the revenue he ma
p p p p p p p p p p p
kes on the property p p p
Loft Lease - p p
CORRECT ANSWER Renting out an entire space/floor
p p p p p p p
Lease Clauses - CORRECT ANSWER 1. Lease duration
p p p p p p p
- commencement date (day that lease starts) p p p p p
- move-in date p
2. Free rent clause p p
3. Landlord work clause (work done on property prior to te p p p p p p p p p
nant move-in) p
4. Tenant's future work clause p p p
5. Notice clause p
6. Tenant options (tenant has right to chooses to extend th
p p p p p p p p p
eir lease into the additional option period)
p p p p p p
7. Restrictions on who landlord can rent the other spaces to p p p p p p p p p
8. Management level p
9. Amenities
10. Use clauses p
11. Estoppel agreement p
