©THESTAR 2024/2025 ALL RIGHTS RESERVED 9:50PM.
Texas SAE: Real Estate Investment Exam
Questions And Answers |Latest 2025 |
Guaranteed Pass.
Active real estate investing comes in three "flavors." - Answer✔Fix and flip
Buy and hold
Wholesaling
Fix and flip - Answer✔Requirements include:
Working capital for the purchase and repairs
Priced low enough to cover costs of repairs, holding period, marketing, closing costs, and profit
Remodeling skills
Eye for needed updates
Risks include:
Running out of money to finish repairs
Inability to sell due to poor market timing
Buy and Hold Strategy - Answer✔Requirements include:
Capital for purchase
Ability to cover debt with rental income during holding period
Risks include: Vacancies
Cash flow shortages
Property value decline
Tenant issues
1
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 9:50PM.
Wholesaling - Answer✔Requirements include:
Ability to find property at a deep discount
Thick skin due to seller reaction to low ball offers
Ability to act quickly, perhaps paying cash
Ability to resell quickly
Risks include: Lack of availability
Getting stuck with property (unable to turn property around quickly)
Paying too much up front, no profit
Passive Investing - Answer✔Real Estate Investment Trusts (REITs)
Real estate Limited Partnerships.
Mutual funds that sell mortgage-backed securities, and you can invest with online real estate
platforms.
REITs - Answer✔Passive Investing companies that invest in professionally managed commercial
properties such as office buildings, apartments, warehouses, or health care facilities. To invest
in an REIT, you purchase publicly traded shares of the company.
Limited Partnership - Answer✔Passive Investing private real estate investments in commercial
property. The general partner is an experienced property manager or real estate development
firm. The investors are the limited partners who provide financing for the real estate project in
exchange for a share of ownership.
Wholesaling
Sid is a wholesaler. He's not interested in buying a property, renovating it, and selling it at a
profit, nor is he interested in buying and holding a property as a rental.
Sid makes the low-ball bid because a wholesaling investor like himself must buy low and sell
fast to make a profit. - Answer✔Sid already has a buyer in mind when he makes his
embarrassingly low offer for a property with motivated sellers.
Real estate investors differ from traditional buyers and sellers. They have different motivations,
different mindsets, and distinctly different goals that you'll need to recognize and work with in
order to build and maintain investor clients - Answer✔Three Investment Goals
Investor clients are more strategic and less emotional. And, while not everyone who invests in
real estate has the same goal, most investors are typically focused on one of the following:
Earning a profit
2
Texas SAE: Real Estate Investment Exam
Questions And Answers |Latest 2025 |
Guaranteed Pass.
Active real estate investing comes in three "flavors." - Answer✔Fix and flip
Buy and hold
Wholesaling
Fix and flip - Answer✔Requirements include:
Working capital for the purchase and repairs
Priced low enough to cover costs of repairs, holding period, marketing, closing costs, and profit
Remodeling skills
Eye for needed updates
Risks include:
Running out of money to finish repairs
Inability to sell due to poor market timing
Buy and Hold Strategy - Answer✔Requirements include:
Capital for purchase
Ability to cover debt with rental income during holding period
Risks include: Vacancies
Cash flow shortages
Property value decline
Tenant issues
1
, ©THESTAR 2024/2025 ALL RIGHTS RESERVED 9:50PM.
Wholesaling - Answer✔Requirements include:
Ability to find property at a deep discount
Thick skin due to seller reaction to low ball offers
Ability to act quickly, perhaps paying cash
Ability to resell quickly
Risks include: Lack of availability
Getting stuck with property (unable to turn property around quickly)
Paying too much up front, no profit
Passive Investing - Answer✔Real Estate Investment Trusts (REITs)
Real estate Limited Partnerships.
Mutual funds that sell mortgage-backed securities, and you can invest with online real estate
platforms.
REITs - Answer✔Passive Investing companies that invest in professionally managed commercial
properties such as office buildings, apartments, warehouses, or health care facilities. To invest
in an REIT, you purchase publicly traded shares of the company.
Limited Partnership - Answer✔Passive Investing private real estate investments in commercial
property. The general partner is an experienced property manager or real estate development
firm. The investors are the limited partners who provide financing for the real estate project in
exchange for a share of ownership.
Wholesaling
Sid is a wholesaler. He's not interested in buying a property, renovating it, and selling it at a
profit, nor is he interested in buying and holding a property as a rental.
Sid makes the low-ball bid because a wholesaling investor like himself must buy low and sell
fast to make a profit. - Answer✔Sid already has a buyer in mind when he makes his
embarrassingly low offer for a property with motivated sellers.
Real estate investors differ from traditional buyers and sellers. They have different motivations,
different mindsets, and distinctly different goals that you'll need to recognize and work with in
order to build and maintain investor clients - Answer✔Three Investment Goals
Investor clients are more strategic and less emotional. And, while not everyone who invests in
real estate has the same goal, most investors are typically focused on one of the following:
Earning a profit
2
