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IAAO 102 EXAMS TESTBANK NEWEST VERSION 200+ QUESTIONS WITH COMPLETE SOLUTIONS $24.99
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IAAO 102 EXAMS TESTBANK NEWEST VERSION 200+ QUESTIONS WITH COMPLETE SOLUTIONS
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Return of investment aka - CORRECT ANSWER ️ Recapture Rate (or getting back the amount invested) Return on Investment - CORRECT ANSWER ️ Overall Yield Rate (or discount rate; profit realized in addition to getting back the amount invested)

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  • September 11, 2024
  • 52
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • components of the capitalization process are
  • iaao 102 exams testbank newest version
  • iaao 102 exams testbank newv
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  • IAAO 102
  • IAAO 102

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IAAO 102 EXAMS TESTBANK 2024-2026
NEWEST VERSION 200+ QUESTIONS WITH
COMPLETE SOLUTIONS


Components of Capitalization Process - CORRECT
ANSWER ✔️ Value, Net Operating Income, and
Capitalization Rate


The underlying economic principle of 3 approaches to
value - CORRECT ANSWER ✔️ substitution


Market Value is also known as - CORRECT ANSWER ✔️
value in exchange


Most probable price the property will sell for in an arm's-
length transaction under normal conditions on the open
market - CORRECT ANSWER ✔️ market value


Higher Cap Rate - CORRECT ANSWER ✔️ Means
Higher Risk and Lower Overall Value

,Lower Cap Rate - CORRECT ANSWER ✔️ Means Lower
Rise and Higher Overall Value


Return of investment aka - CORRECT ANSWER ✔️
Recapture Rate (or getting back the amount invested)


Return on Investment - CORRECT ANSWER ✔️ Overall
Yield Rate (or discount rate; profit realized in addition to
getting back the amount invested)


The nine factors influencing the decisions of investors -
CORRECT ANSWER ✔️ Safety, Liquidity, Collateral,
Time, Size, Management, Appreciation, Income Tax
Advantages, Leverage.


Time to convert to actual dollars - CORRECT ANSWER
✔️ Liquidity

,Collateral - CORRECT ANSWER ✔️ The entire
investment in a savings account can be used as collateral
for a loan. However, lending institutions generally will only
allow a percentage of the real estates market value to be
used as collateral.


Leverage - CORRECT ANSWER ✔️ The borrowing of
funds in hopes of earnings greater return than the cost of
the borrowed funds.


3 types of leverage. - CORRECT ANSWER ✔️ Positive
negative neutral


The benefits from borrowing funds exceed the costs of
borrowing. - CORRECT ANSWER ✔️ Positive leverage


An investment situation in which the cost of borrowed
funds is exactly equal to the yield provided by the
investment. - CORRECT ANSWER ✔️ Neutral

, occurs when borrowed funds cost more than the income
the funds generate - CORRECT ANSWER ✔️ Negative
leverage


Cash, Trust Deed, Land Contract, Mortgages - CORRECT
ANSWER ✔️ Four types of real estate financing


Trust Deed - CORRECT ANSWER ✔️ a legal instrument
similar to a mortgage that transfers the title of a property to
a trustee. The borrow conveys the title to a trustee for the
benefit of the lender but retains the right to use and
occupy the property. Used to eliminate the need for a
foreclosure proceeding against the borrower in the event
of of a default.


Land Contract - CORRECT ANSWER ✔️ aka as contract
for deed or installment sales contract. the purchaser
agrees to pay a small down payment when the contract is
signed with the balance is specified amounts over the term
of the contract.

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