Ree3043 - Study guides, Class notes & Summaries

A state license is required for anyone who: a)sells their own property b)sells property for other people c)a and b d)none of the above ️: sells property for other people Which of the following arrangements does not qualify as an agency relationship in real estate transactions? a)a seller hires a broker to help locate a buyer b)a broker hires a sales associate to help locate buyers for properties or properties for buyers c)a buyer hires a broker to help locate a property for pur...

REE3043 Exam 5 Questions with Complete Solutions Already Passed Given the following information regarding an income producing property, determine the NPV using levered cash flows in your analysis: required equity investment: $270,000; expected NOI for each of the next five years: $150,000; debt service for each of the next five years: $125,000; expected holding period: five years; required yield on levered cash flows: 15%; expected sale price at end of year 5: $2,000,000; expected cost of...

Given the following information regarding an income producing property, determine the NPV using levered cash flows in your analysis: required equity investment: $270,000; expected NOI for each of the next five years: $150,000; debt service for each of the next five years: $125,000; expected holding period: five years; required yield on levered cash flows: 15%; expected sale price at end of year 5: $2,000,000; expected cost of sale: $125,000; expected mortgage balance at time of sale: $...

REE3043 Exam Questions With Revised Answers What two contracts are always involved in a mortgage loan? - answerA note and a mortgage The two most common types of caps in an adjustable rate mortgage are: - answerPeriodic and overall What happens to the balance of a loan with negative amortization? - answerIt increases What is a Balloon Loan? - answerA loan with an amortization term that determines interest and principle payments as if it were a fully amortized loan and a shorter term for m...

A market where tenants negotiate rent and other terms with property owners or their managers is referred to as a ️: User Market The market in which required rates of return on available investment opportunities are determined is referred to as the: ️: Capital Market The actions of local, state, and federal governments affect real estate values ️: All of the above Approximately what portion of U.S. households own their own home? ️: Approximately two thirds Of the following ass...

REE3043 REVIEW TEST QUESTIONS WITH ALL CORRECT SOLUTIONS As part of their underwriting process, lenders may rely on debt ratios to ascertain whether borrowers have the ability to make regular payments on their mortgages. Utilizing the following information, calculate the total (back-end) debt ratio we learned in class. Monthly principal and interest on mortgage loan: $1500; Monthly tax and insurance payments into escrow: $200; Estimated monthly utility bills: $350; Monthly car loan payment (2 y...

REE3043 Chapter 2 Exam Questions With Revised Answers Which of the following is not a form of property right? Lien Easement Leasehold License Mineral rights - answerLicense Which of these easements is most likely to be an easement in gross? Common wall easement Driveway easement Drainage easement Power line easement Sunlight easement - answerPower line easement Rules used by courts to determine whether something is a fixture include all except? Intention of the parties Manner of ...

REE3043 EXAM QUESTIONS WITH COMPLETE SOLUTIONS Gross salary: 50,000 Mortgage debt : .36 Total : 18,000 Divide by 12 to get monthly Gives you 1,500 a month. The bank does not want you total debt ( including the cost of housing ) to be more than 1,500 a month. - Answer-Total debt ratio - school's - property tax rate - driving time to work - crime in the area - recreational amenities - Answer-Things to consider about choosing an area in which to buy a home. - don't make late payments...

REE3043 TEST QUESTIONS WITH CERTIFIED ANSWERS – UPDATED Answer-False - these periods come from long length of construction period and mortgage lenders' lending policies T or F: Rents reflect the price of space and sale prices reflect the value of assets and the right to collect rents - Answer-True T or F: 3 key trends that will affect commercial real estate markets are population growth, technology trends, and the changes anticipated in the ethnic composition of the population - Answe...

REE3043 PRACTICE TEST QUESTIONS WITH REVISED ANSWERS – UPDATED!! There will be a fixed payment ( can be a year or monthly ). Then the rate is adjusted - Margin never changes - Index changes as per the terms of the loan - Answer-ARM - adjustable rate mortgage Example : - principle : $400 - interest : $600 - total payment : $1,000 - optional arm allows you to decide how much of your payment you want to send in - whatever you send it goes to pay down the interest first. Anything left ...