Real Estate 306 Exam 1 | Questions And Answers Latest {2024- 2025} A+
Graded | 100% Verified
Real Estate - An asset class, Land improvements on any land and improvements on it (use of leverage,
inflation hedge, tangible asset, depreciates, 1031 Exchange)
Real Estate as an Asset - Holds value and falls under PPE
How much does Real Estate make up of the US GDP? - 25%
How many jobs does RE create for AMericans? - 9 million
How much government revenue is generated from Real Estate - 70%
By 2010, how much of the US Land was developed? - 6%
Since 1982, what has been the increase in land use in the US? - 55%
Questions to ask during site selection (4 of them) - 1. What improvements are needed? (site access,
setback, site work, utilities)
2. What are the environmental risks?
3. What are the applicable fees (Aside from cost, law, services, and policies)
4. What are the design requirements?
Real Estate Cycle - 1. There's an excess supply of RE
2. Leads to low vacancies (high levels of occupancy)
3. Rent prices are then increased
4. Accelerated new construction
5. Oversupply in homes
6. High Vacancies (low occupancies)
, 7. Decline prices and rent, and construction
Assets - Anything that holds value and can be used to generate more value
Equities -
Equities - A type of asset class that can be bought as a stake or ownership in a company, through stocks
and bonds
Cash/liquid Assets - An asset class
Fixed Income - An Asset Class
Tangible - Anything that is physical and we can touch
Credit Tenant - A term that is used to describe a tenant who has a good credit score and can pay their
lease with the banks money (Reliable way for the owner to receive payments
NIMBY - not in my backyard
YIMBY - yes in my backyard
Leverage - The utilization of debt from debt investors (banks) that can lead into investing in RE
Depreciation - An accounting standard on fixed assets, that allows them to depreciate over its useful life
(fixed amount)
Linkages - Anything that would increase the value of a property
- School
- Park
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 oneclass. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.48. You're not tied to anything after your purchase.