IAAO 102 with 100% Answers
Anticipation - ✔️✔️- Value is created by the expectation of benefits to be derived in the
future
Substitution - ✔️✔️- the prices, rents, and rates of return of property tend to be set by
the current prices, rents and rates of return for equally desire able substitute properties.
Contribution - ✔️✔️- the value of a component of real estate can be measured by the
amount it contributes to net operating income because net operating income can be
capitalized into value.
Market Value - ✔️✔️- means the most probable price which a property should bring in
a competitive and open market under all conditions.
5 Analysis Questions for Investors - - ✔️✔️- 1. How much it cost?
2. How much will I get back?
3. When will I get it back?
4. What are the risk?
5. What are some comps ROI compared to my interested property?
Leverage - ✔️✔️- borrowing of funds in hopes of earning a greater return than the cost
of the borrowed funds. This amount can be be negative, positive, or neutral.
Mortgage - ✔️✔️- most common type of financing for real estate.
Junior Mortgage - ✔️✔️- typical a second mortgage
Chattel Mortgage - ✔️✔️- a mortgage only on personal property.
Anticipation - ✔️✔️- Value is created by the expectation of benefits to be derived in the
future
Substitution - ✔️✔️- the prices, rents, and rates of return of property tend to be set by
the current prices, rents and rates of return for equally desire able substitute properties.
Contribution - ✔️✔️- the value of a component of real estate can be measured by the
amount it contributes to net operating income because net operating income can be
capitalized into value.
Market Value - ✔️✔️- means the most probable price which a property should bring in
a competitive and open market under all conditions.
5 Analysis Questions for Investors - - ✔️✔️- 1. How much it cost?
2. How much will I get back?
3. When will I get it back?
4. What are the risk?
5. What are some comps ROI compared to my interested property?
Leverage - ✔️✔️- borrowing of funds in hopes of earning a greater return than the cost
of the borrowed funds. This amount can be be negative, positive, or neutral.
Mortgage - ✔️✔️- most common type of financing for real estate.
Junior Mortgage - ✔️✔️- typical a second mortgage
Chattel Mortgage - ✔️✔️- a mortgage only on personal property.
