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Texas Real Estate Investment Questions with
Detailed Verified Answers
betterments Ans: Improvements to property made by tenants.
bundle of rights Ans: Describes the owner's rights of control over
property.
buyer's market Ans: When the supply of a commodity exceeds the
demand.
cycle Ans: "Events that repeat themselves on a regular basis; may be a
business cycle, and economic cycle, or a real estate cycle. "
demand Ans: The desire to acquire properties or services.
discretionary funds Ans: Money available for investment in excess of
that needed for necessities.
easy money Ans: When interest rates are low and funds for loans are
plentiful.
fixity Ans: Real estate that is permanently attached to the ground.
forgoing Ans: "The act of not doing something. Not accepting a benefit
now, often in the hope of greater benefits later. "
highest and best use Ans: That possible use of property that will
produce its greatest net income and therby develop its hightest value.
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leveraging Ans: Use of borrowed money to finance the purchase of an
investment.
liquidity Ans: Condition under which something can be sold promptly at
market value.
longevity Ans: The concept of real estate that recognizes the long-term
nature of most real estate investments.
market segmentation Ans: "Due to the fractured aspect of the real
estate business, the market tends to be local in nature and its conditions
may vary greatly from location to location. "
market value Ans: "The highest price fro which a property would sell,
assuming a reasonable time for the sale and a knowledgeable buyer and
seller acting without duress. "
permanence Ans: "An attribute of real estate that recognizes that real
estate investment is long term, complex, and often requires large sums
of money. "
personal property Ans: Moveable property that does not fit the
definition of realty.
property Ans: Anything capable of being owned.
real estate Ans: "A portion of the earth's surface, extending downward
to the center of the earth and upward into space, including all things
permanently attached thereto by nature or people, and all legal rights
therein."
real property Ans: The rights of real estate ownership; often call the
bundle of legal rights.
relative scarcity Ans: A situation in which the consumer perceives a
shortage and bids up the value of the commodity accordingly.
risk Ans: The possibility of loss.
Texas Real Estate Investment Questions with
Detailed Verified Answers
betterments Ans: Improvements to property made by tenants.
bundle of rights Ans: Describes the owner's rights of control over
property.
buyer's market Ans: When the supply of a commodity exceeds the
demand.
cycle Ans: "Events that repeat themselves on a regular basis; may be a
business cycle, and economic cycle, or a real estate cycle. "
demand Ans: The desire to acquire properties or services.
discretionary funds Ans: Money available for investment in excess of
that needed for necessities.
easy money Ans: When interest rates are low and funds for loans are
plentiful.
fixity Ans: Real estate that is permanently attached to the ground.
forgoing Ans: "The act of not doing something. Not accepting a benefit
now, often in the hope of greater benefits later. "
highest and best use Ans: That possible use of property that will
produce its greatest net income and therby develop its hightest value.
, Page | 2
leveraging Ans: Use of borrowed money to finance the purchase of an
investment.
liquidity Ans: Condition under which something can be sold promptly at
market value.
longevity Ans: The concept of real estate that recognizes the long-term
nature of most real estate investments.
market segmentation Ans: "Due to the fractured aspect of the real
estate business, the market tends to be local in nature and its conditions
may vary greatly from location to location. "
market value Ans: "The highest price fro which a property would sell,
assuming a reasonable time for the sale and a knowledgeable buyer and
seller acting without duress. "
permanence Ans: "An attribute of real estate that recognizes that real
estate investment is long term, complex, and often requires large sums
of money. "
personal property Ans: Moveable property that does not fit the
definition of realty.
property Ans: Anything capable of being owned.
real estate Ans: "A portion of the earth's surface, extending downward
to the center of the earth and upward into space, including all things
permanently attached thereto by nature or people, and all legal rights
therein."
real property Ans: The rights of real estate ownership; often call the
bundle of legal rights.
relative scarcity Ans: A situation in which the consumer perceives a
shortage and bids up the value of the commodity accordingly.
risk Ans: The possibility of loss.
