100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Previously searched by you
Previously searched by you
logo
Florida Real Estate. Ch 17. Real Estate Investments and Business Opportunity Brokerage Questions and Answers 2024 $15.49
Add to cart
Quickly navigate to
Preview
  2.  
  3. Florida Business And Finance
  4.  
  5. Florida business and Finance

Exam (elaborations)

Florida Real Estate. Ch 17. Real Estate Investments and Business Opportunity Brokerage Questions and Answers 2024
 0 purchase
  • Course
  • Florida business and Finance
  • Institution
  • Florida Business And Finance

Florida Real Estate. Ch 17. Real Estate Investments and Business Opportunity Brokerage

Preview 2 out of 8  pages

Document information

  • September 23, 2024
  • 8
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • florida real estate ch 17 real estate investment

Written for

  • Florida business and Finance
  • Florida business and Finance

Seller

avatar-seller
julianah420

Reviews received

Content preview

Florida Real Estate. Ch 17. Real Estate
Investments and Business Opportunity
Brokerage

Appreciation- - answerAn increase in value.

Asset- - answerAnything of value.

Cash Flow- - answerThe resulting amount when annual debt service, tax liability, and
capital improvement costs are subtracted from net operating income.

Equity- - answerThe market value of a property less any debt against it; in a business
entity, assets minus liabilities equals capital (owner's equity); a system of legal rules
administered by a court of chancery.

Leverage- - answerThe use of borrowed funds to finance the purchase of an asset; the
use of another's money to make more money.

Liquidity- - answerThe ability to convert noncash assets into cash quickly; refers to a
firm's cash position and its ability to meet obligations.

Basis- - answerThe initial cost of an investor's property.

Capital Gain (or Loss)- - answerThe profit (or loss) from the sale of an asset, including
real property.

Tax Shelter- - answerAn investment that shields items of income or gain from payment
of income taxes; a term used to describe some tax advantages of owning real property
(or other investments), including postponement or even elimination of certain taxes.

Real Estate Investment Trust (REIT)- - answerA method of pooling investment money
using the trust form of ownership.

Risk- - answerThe chance of losing all or a part of an investment; the uncertainty of
financial loss.

Equity is the property's value minus fixed expenses.

A. True
B. False - answerB. False

, Equity is the property's value minus mortgage debt.

Negative leverage occurs when the benefits of borrowing exceed the costs of
borrowing.

A. True
B. False - answerB. False

The statement is false. If the benefits of borrowing exceed the costs of borrowing, it is
called positive leverage. If the borrowed funds cost more than they are producing, it is
called negative leverage.

The ability to sell an investment quickly without loss of capital is called leverage.

A. True
B. False - answerB. False

The statement is false. Liquidity refers to the ability to sell an investment very quickly
without loss of capital.

A lack of maintenance is called deferred maintenance.

A. True
B. False - answerA. True

The statement is true. A lack of proper maintenance is called deferred maintenance.

Real estate investments require active management.

A. True
B. False - answerA. True

The statement is true. One of the disadvantages of investing in real estate is the need
for active management.

An advantage of investment in real estate is that real estate is typically highly leveraged.

A. True
B. False - answerA. True

The statement is true. An advantage of real estate investments is the leverage of
borrowed money. An investor can usually borrow 70%-75% of the appraised value to
finance a real estate investment.

A disadvantage of investing in real estate is the relatively high degree of risk.

The benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

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

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

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 julianah420. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $15.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

69252 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 15 years now

Start selling
$15.49
  • (0)
Add to cart
Added