ACTUAL EXAM QUESTIONS WITH
CORRECT ANSWERS 100% VERIFIED
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IncomemApproachm-
mCORRECTmANSWERmApproachmtomvalueminmwhichmthemappraisermanalyzesmamproperty'smabilitymto
mearnmfuturemincome
InvestormAsksmThesemQuestionsmtomAnalyzemInvestmentsm-
mCORRECTmANSWERm1.mHowmmuchmwillmitmcost
2.mHowmmuchmwillmImgetmback
3.mWhenmwillmImgetmitmback
4.mWhatmaremthemrisks
5.mWhatmismthemreturnmonminvestment
ReturnmonmInvestmentm-
mCORRECTmANSWERmThemprofitmorminterestmearnedmonmanminvestment.mAKAmOverallmyeildm(Yo)mor
mDiscountmRate
RecapturemRatem-
mCORRECTmANSWERmGettingmbackmthemamountminvested.mAKAmreturnmOFminvestment.
PrinciplemofmAnticipationm-
mCORRECTmANSWERmAffirmsmthatmvaluemismcreatedmbymanticipatedmbenefitsmtombemderivedminmthe
mfuture.
PrinciplemofmSubstitutionm-
mCORRECTmANSWERmThemmaximummvaluemofmampropertymtendsmtombemsetmbymthemcostmofmpurcha
singmanmequallymdesirablemsubstitutemproperty.
, 9mFactorsmInfluencingmInvestormDecisionsm-mCORRECTmANSWERm1.mTime
2.mSafety
3.mLiquidity
4.mIncomemtaxmbenefits
5.mAppreciation
6.mManagement
7.mSize
8.mCollateralm
9.mLeverage
PositivemLeveragem-
mCORRECTmANSWERmThembenefitsmfrommborrowingmfundsmexceedmthemcostsmofmborrowing.
NegativemLeveragem-
mCORRECTmANSWERmOccursmwhenmborrowedmfundsmcostmmoremthanmthemincomemthemfundsmgen
erate
NeutralmLeveragem-
mCORRECTmANSWERmOccursmwhenmthemratemofmreturnmfrommtheminvestmentmismequalmtomtheminte
restmratempaidmonmborrowedmfunds
4mMethodsmofmFinancingmRealmEstatem-mCORRECTmANSWERm1.mCash
2.mTrustmDeed
3.mLandmContract
4.mMortgage