TEXAS SAE REAL ESTATE INVESTMENT 2 NEWEST EXAM
VERSIONS (VERSIONS A & B) WITH ACTUAL COMPLETE
300 REAL EXAM QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES (VERIFIED ANSWERS)
|ALREADY GRADED A+
In nine states, married couples who purchase property during
the marriage own that property equally, meaning they own it as
______. - ANSWER -Community property
Theodore is planning to purchase one of two companies he's
been researching.
Both produce the same type of tools. Company A has a high
operating leverage. Company B has a low operating leverage.
Theodore is favoring Company A because of it's operating
leverage. What advantage does Company B have that Theodore
might not have recognized? - ANSWER -Company B doesn't
have to increase sales as much as Company A to cover its fixed
costs.
What's the formula used to calculate monthly simple interest on
a loan? - ANSWER -Loan balance x interest rate ÷ number of
payments annually
,Calculate monthly simple interest by multiplying the principal by
the interest rate and dividing by 12.
Roger is interested in converting his office building into office
condominiums. He's had the building renovated, and filed the
appropriate paperwork. What else does Roger need to do as part
of the conversion process? - ANSWER -Promote the sale of the
condominium offices
Roger needs to work on getting the individual office condo
spaces sold and the sales contracts closed.
Which of the following is a potential ramification to the seller if a
short sale is completed? - ANSWER -A short sale can negatively
impact the seller's credit, and the lender may seek a deficiency
judgment for the amount not repaid.
A(n) ______ budget helps property managers maximize
profitability and avoid unforeseen major expenses and repairs. -
ANSWER -Operating
The operating budget helps managers maximize profitability and
avoid unforeseen major expenses and repairs.
,Santiago plans to develop a super-regional shopping center.
What size lot will he need? - ANSWER -60 to 120 acres
Super-regional shopping centers are built on properties of 60 to
120 acres.
When it comes to real estate investments, "commercial" is
______. - ANSWER Both an investment strategy and a property
type
The increase a property's value beyond what the investor
originally invested as a down payment is called _______. -
ANSWER -Equity build up
Equity buildup is simply the addition in value to the property
beyond what the investor originally invested as a down payment.
Which of the following is true regarding the federal gift tax? -
ANSWER -It applies even if the donor didn't intend it to be a gift.
The gift subject to a gift tax may be in the form of money, real
estate or other item of value. A gift tax applies whether the donor
intended the transfer to be a gift or not.
, After spending three years gutting and renovating her 1925
American Foursquare into a local showplace, Evette buys
another rundown property on her street as an investment. Given
her experience, which of the following strategies is her most
likely choice? - ANSWER -Fix and flip
Given her experience and skills, Evonne is most likely to buy
fixer-uppers with the intention of reselling them for a profit.
Margie loves to shop at the neighborhood shopping center near
her. The location is so convenient, and the parking lot is easy to
get in and out of, even though there can be a lot of traffic at
certain times of the day. Where is Margie's neighborhood
shopping center located? - ANSWER -On a corner-lot, at the
intersection of two major thoroughfares
Although occasionally found in the middle of the block, where
they're set back from the major street, most neighborhood
shopping centers are found in readily accessible, corner-lot
sites, at the intersection of two major thoroughfares.
Another benefit of a long-term tenant for the landowner is the
______ is considered an asset and can be used as collateral for
additional financing. -
ANSWER -Lease
VERSIONS (VERSIONS A & B) WITH ACTUAL COMPLETE
300 REAL EXAM QUESTIONS AND CORRECT DETAILED
ANSWERS WITH RATIONALES (VERIFIED ANSWERS)
|ALREADY GRADED A+
In nine states, married couples who purchase property during
the marriage own that property equally, meaning they own it as
______. - ANSWER -Community property
Theodore is planning to purchase one of two companies he's
been researching.
Both produce the same type of tools. Company A has a high
operating leverage. Company B has a low operating leverage.
Theodore is favoring Company A because of it's operating
leverage. What advantage does Company B have that Theodore
might not have recognized? - ANSWER -Company B doesn't
have to increase sales as much as Company A to cover its fixed
costs.
What's the formula used to calculate monthly simple interest on
a loan? - ANSWER -Loan balance x interest rate ÷ number of
payments annually
,Calculate monthly simple interest by multiplying the principal by
the interest rate and dividing by 12.
Roger is interested in converting his office building into office
condominiums. He's had the building renovated, and filed the
appropriate paperwork. What else does Roger need to do as part
of the conversion process? - ANSWER -Promote the sale of the
condominium offices
Roger needs to work on getting the individual office condo
spaces sold and the sales contracts closed.
Which of the following is a potential ramification to the seller if a
short sale is completed? - ANSWER -A short sale can negatively
impact the seller's credit, and the lender may seek a deficiency
judgment for the amount not repaid.
A(n) ______ budget helps property managers maximize
profitability and avoid unforeseen major expenses and repairs. -
ANSWER -Operating
The operating budget helps managers maximize profitability and
avoid unforeseen major expenses and repairs.
,Santiago plans to develop a super-regional shopping center.
What size lot will he need? - ANSWER -60 to 120 acres
Super-regional shopping centers are built on properties of 60 to
120 acres.
When it comes to real estate investments, "commercial" is
______. - ANSWER Both an investment strategy and a property
type
The increase a property's value beyond what the investor
originally invested as a down payment is called _______. -
ANSWER -Equity build up
Equity buildup is simply the addition in value to the property
beyond what the investor originally invested as a down payment.
Which of the following is true regarding the federal gift tax? -
ANSWER -It applies even if the donor didn't intend it to be a gift.
The gift subject to a gift tax may be in the form of money, real
estate or other item of value. A gift tax applies whether the donor
intended the transfer to be a gift or not.
, After spending three years gutting and renovating her 1925
American Foursquare into a local showplace, Evette buys
another rundown property on her street as an investment. Given
her experience, which of the following strategies is her most
likely choice? - ANSWER -Fix and flip
Given her experience and skills, Evonne is most likely to buy
fixer-uppers with the intention of reselling them for a profit.
Margie loves to shop at the neighborhood shopping center near
her. The location is so convenient, and the parking lot is easy to
get in and out of, even though there can be a lot of traffic at
certain times of the day. Where is Margie's neighborhood
shopping center located? - ANSWER -On a corner-lot, at the
intersection of two major thoroughfares
Although occasionally found in the middle of the block, where
they're set back from the major street, most neighborhood
shopping centers are found in readily accessible, corner-lot
sites, at the intersection of two major thoroughfares.
Another benefit of a long-term tenant for the landowner is the
______ is considered an asset and can be used as collateral for
additional financing. -
ANSWER -Lease
