1 of 10 - Which of the following is a possible benefit of investing in real property?
Capital outlay
Financing
Appreciation
Property management
You answered correctly
2 of 10 - An association of two or more people who combine financial resources to achieve investment objectives is:
Not allowed in California.
A syndicate.
Made up of wealthy individuals.
A group of brokers.
You answered correctly
3 of 10 - What is the foremost reason people invest in property?
To save on taxes
To make money
To plan for retirement
To have a second home to enjoy
You answered correctly
4 of 10 - Which of the following is not a possible benefit of investing in real property?
Tax shelter
Liquidity
Income
Stability
You answered correctly
5 of 10 - Which statement is not true about a Real Estate Investment Trust?
Sells ownership shares.
Receives special tax considerations.
Offers high yields to customers.
Easy to qualify for.
You answered incorrectly
An REIT sells ownership shares, receives special tax considerations, and offers high yields to investors.
6 of 10 - Which lender typically deals in interim financing?
Commercial bank
Life insurance company
Syndicate
Real estate trust
You answered correctly
7 of 10 - Examining the economic soundness of a property means looking at all of the following except which?
Zoning issues
Community growth trends
Refinancing
Income projections of the property
You answered correctly
8 of 10 - Which figure represents the amount of income available as a return to an investor?
Net operating income
Potential gross income
Adjusted gross spendable income
Effective gross income
You answered incorrectly
The net operating income of an investment property is calculated by subtracting the operating expenses from the effective gross income, resulting in the amount of income available as a return to the investor.
9 of 10 - Which of these lenders would be most likely to finance a large shopping mall?
Commercial bank
Seller
Savings and loan association
Life insurance company
You answered incorrectly
Savings banks typically deal only in single-family residence loans, while commercial banks specialize in interim financing. Life insurance companies like to invest in large commercial projects such as shopping malls, and sellers might finance land and special purpose projects when money is tight.
10 of 10 - When all members have unlimited liability for debts and obligations of the group, the organization is a:
