TEXAS REAL ESTATE FINANCE FINAL EXAM
QUESTIONS WITH VERIFIED SOLUTIONS
2026/2027 LATEST UPDATE
Mary is getting a $120,000 loan at 6.5 percent and will pay 3 discount
points. What will the effective interest rate be?
A) 0.0665
B) 0.0675
C) 0.06875
D) 0.0695 --ANSWER--C) 0.06875
Investor Pete specializes in obtaining properties from investors in
financial difficulty. What investment strategy does Pete practice?
A) Arbitrage
B) Special situation
C) Opportunistic
D) Development --ANSWER--C) Opportunistic
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,What is the term used to describe a loan that is not government-
backed?
A) Standard
B) Conventional
C) Normal
D) Junior --ANSWER--B) Conventional
What is the maximum annual amount a single taxpayer can give to a
person without incurring a gift tax liability?
A) $10,000.00
B) $12,000.00
C) $15,000.00
D) $26,000.00 --ANSWER--C) $15,000.00
Bill bought a property for $270,000. The value of the building on the
property is $220,000. If the building has an economic life of 50 years,
what is the depreciated value of the building after 5 years?
A) $22,000.00
B) $176,000.00
C) $198,000.00
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, D) $220,000.00 --ANSWER--C) $198,000.00
What does the term "mixed-use development" mean?
A) A subdivision with common areas for all residents
B) More than one use for a single building
C) An apartment complex attached to a city park
D) An industrial park in a farming community --ANSWER--B) More
than one use for a single building
What percent of the REIT's assets must be made up of cash, real
estate, mortgage notes, or government securities?
A) 30
B) 50
C) 75
D) 95 --ANSWER--C) 75
Which of the following is typically not a short-term mortgage loan?
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QUESTIONS WITH VERIFIED SOLUTIONS
2026/2027 LATEST UPDATE
Mary is getting a $120,000 loan at 6.5 percent and will pay 3 discount
points. What will the effective interest rate be?
A) 0.0665
B) 0.0675
C) 0.06875
D) 0.0695 --ANSWER--C) 0.06875
Investor Pete specializes in obtaining properties from investors in
financial difficulty. What investment strategy does Pete practice?
A) Arbitrage
B) Special situation
C) Opportunistic
D) Development --ANSWER--C) Opportunistic
Page 1 of 21
,What is the term used to describe a loan that is not government-
backed?
A) Standard
B) Conventional
C) Normal
D) Junior --ANSWER--B) Conventional
What is the maximum annual amount a single taxpayer can give to a
person without incurring a gift tax liability?
A) $10,000.00
B) $12,000.00
C) $15,000.00
D) $26,000.00 --ANSWER--C) $15,000.00
Bill bought a property for $270,000. The value of the building on the
property is $220,000. If the building has an economic life of 50 years,
what is the depreciated value of the building after 5 years?
A) $22,000.00
B) $176,000.00
C) $198,000.00
Page 2 of 21
, D) $220,000.00 --ANSWER--C) $198,000.00
What does the term "mixed-use development" mean?
A) A subdivision with common areas for all residents
B) More than one use for a single building
C) An apartment complex attached to a city park
D) An industrial park in a farming community --ANSWER--B) More
than one use for a single building
What percent of the REIT's assets must be made up of cash, real
estate, mortgage notes, or government securities?
A) 30
B) 50
C) 75
D) 95 --ANSWER--C) 75
Which of the following is typically not a short-term mortgage loan?
Page 3 of 21
