REE 3043 EXAM QUESTIONS WITH ALL CORRECT ANSWERS
The investment strategy may be separated into three components - Answer Investment policy, investment objectives, and investment policies
Characteristics of income property investment - Answer Property Type- Apartments, hotels, office building...
The investment strategy may be separated into three components - Answer ✔
Investment policy, investment objectives, and investment policies
Characteristics of income property investment - Answer ✔ Property Type- Apartments,
hotels, office buildings etc
Rental Income
Purchase as Investors
Geographic Scope
Net sellping price NSP= - Answer ✔ expected sale price (SP) - selling expense (SE)
a measure of the extent to which NOI can decline before it is sufficient to service the
debt, defined as net operating income over debt service - Answer ✔ debt coverage ratio
the percentage of an equity investment returned in cash, before income taxes, for one
year - Answer ✔ equity dividend rate
the rent that could be obtained by renting a property on the open market - Answer ✔
market rent
the rent specified in the lease contract - Answer ✔ contract rent
you are considering purchasing a retail building for 5,000,000 (50,000 sq. ft. net lease
area). You expect lease in the first year for $18 per sq ft. Vacancy and collection losses
are expected to be 9 percent of PGI' and operating expenses 45 percent of EGI. What is
expected operating income (NOI) for the first year? - Answer ✔ 450,450
You are considering purchasing a retail building for 5,000,000 (50,000 sq. ft. net lease
area). You expect lease in the first year for $18 per sq ft. Vacancy and collection losses
are expected to be 9 percent of PGI' and operating expenses 45 percent of EGI. Using
selling price, what is the implied first year overall capitalization rate ? - Answer ✔ 9.0
Percent
Objective of U.S tax law - Answer ✔ raise revenue in an efficient and equitable manner
& promotion of economically and socially desirable activities
, Real estate is classified into four categories - Answer ✔ personal residence, dealer
property, trade/business property, and investment property
Forms of Ownership - Answer ✔ sole proprietorship, partnership, corporation
Types of Income - Answer ✔ active income- income earned from salaries, wages,
commissions, fees, and bonuses
portfolio income-interest and dividends, and capital gains from stock, bond, and other
financial security investment
passive activity income- generated from trade and business activities
operating expenses - Answer ✔ operating expenses are generally tax dectuibles in the
year they are incurred
Economists suggest that the value of something results from its utility and: - Answer ✔
Scarcity
A branch of economics that extends the basic ideas of the early classical and
neoclassical economists to better understand and predict how humans use space is
termed: - Answer ✔ Urban economics
Formals arrangements and associations that members of society make to support
fundamental economics and social activities are referred to, in the text as - Answer ✔
institutions
Marshal contended that in a perfect market, the value of a good - Answer ✔ Was equal
to its price
Commercial mortgages held in portfolios of lenders are generally referred to as -
Answer ✔ Unsecuritized commercial mortgages
Stocks,bonds, and cash are generally classified as - Answer ✔ Financial assets
Real estate in the United States represents approximately what portion of the world's
wealth? - Answer ✔ 15 %
Approximately __________ of the wealth of real estate in the U.S Accrues to residential
property - Answer ✔ 75%
According to the text, business real estate (excluding farmland) accounts for
approximately _____ percent of the total value of real estate in the U.S? - Answer ✔
15%
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 Scholarsstudyguide. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $11.49. You're not tied to anything after your purchase.
