real estate 306; Questions and Answers 100% Correct
6 views 0 purchase
Course
Real Estate 306
Institution
Real Estate 306
real estate 306; Questions and Answers 100%
Correct
Foreclosure Correct answer--The action of taking possession of a mortgaged property
when the mortgagor fails to keep-up their mortgage payments
Lien Correct answer--The right to take hold or sell the property of a debtor as security or
pay...
real estate 306; Questions and Answers 100%
Correct
Foreclosure Correct answer--The action of taking possession of a mortgaged property
when the mortgagor fails to keep-up their mortgage payments
Lien Correct answer--The right to take hold or sell the property of a debtor as security or
payment for a debt, mortgage.
- right to use property as collateral
Term Sheet Correct answer-A non-binding financing commitment.
Credit Committee Correct answer-A loan committee that consists of upper management
of a lending institution with the authority to approve loans that the initial loan officer does not
have the authority to approve.
special purpose entity (SPE) Correct answer--An entity created for a specific purpose such
as a Limited Liability Company (LLC) or Limited Partnership (LP).
- interest or shares in the LLC/LP is what is sold to investors when they invest in a deal
Operating Agreement Correct answer-identifies the relationship between
investors/owners/developer in a a deal and spells out their percentage ownership and any
rights and responsibilities and profit splits
mortgage Correct answer--a specific type of loan that is used to buy real estate
, real estate 306; Questions and Answers 100%
Correct
- borrower agrees to pay the lender overtime in installed payments and divided into principal
and interest
note Correct answer--binds the borrower to repay the mortgage within an agreed period
and outlines the terms of the loan
-establishes interest rate
guaranty Correct answer-Promise by a third-party entity, or individual, to pay or perform
the obligations of the borrower.
amortization Correct answer--the reduction of a loan balance through payments (paying
off the principal) made over a period of time
term Correct answer-he amount of time during which a borrower repays a loan if fully
amortizing, or until the outstanding loan balance, or balloon payment, is due if non-amortizing
(i.e., interest only) or partiallyamortizing.
principal Correct answer--The amount of money borrowed
- the return OF capital to the bank after amortization
intrest rate Correct answer--the percentage of a sum of money charged for its use
- return on capital for the bank after amortization
, real estate 306; Questions and Answers 100%
Correct
-index rate+ margin
index Correct answer-- benchmark interest rate that reflects the general market
conditions
- a widely available quoted rate
margin Correct answer-the portion of the interest rate for a commercial teal estate loan
that represents the lenders premium for the risk they are taking loaning the money
loan to value (LTV) Correct answer--Ratio between property's value and the amount lent
on it.
- LTV and risk and inversely related
Debt Service Coverage Ratio Correct answer--A measure of the cash flow available to pay
current debt obligations
-NOI/ total debt service
Debt Service Correct answer-Payments for the principal and interest owed on a loan for
that period.
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller GOLDTUTORS. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.99. You're not tied to anything after your purchase.
