TEXAS SAE REAL ESTATE INVESTMENT 2 LATEST VERSIONS
(VERSIONS A & B) 2024-2025 ACTUAL EXAM 300 REAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
Steven put down $10,000 toward a property's purchase price, financed the rest, and now has a
cash flow of $2,800 after repairs and debt service. What's his ROI?
a 21%
b 26%
c 28%
d 32% - (Correct Answer)c 28%
Return on investment or ROI = cash flow ÷ cash investment. $2,800 ÷ $10,000 = 28%.
你是想要一篇“眼睛容易阅读
的”中文文章
What's a legal agreement or promise made between two parties?
a. A consideration
b. A covenant
c. A handshake
d. A negotiation - (Correct Answer)b. A covenant
A legal agreement or promise made between two parties is a covenant.
Which type of commercial property offers parking surrounding the outside of the property, but
also indoor parking beneath the building?
a. Community shopping center
,b. Neighborhood shopping center
c. Regional shopping center
d. Strip store - (Correct Answer)c. Regional shopping center
**Regional shopping centers are usually enclosed, with stores facing inward and connected by a
common walkway. Parking is available surrounding the outside of these centers, although some
have indoor parking beneath the building, as well.
During the option period to renew a lease, who determines whether the option will be exercised?
a. Either the landlord or the tenant can make the decision.
b. It must be mutually agreed to by both the landlord and the tenant.
c. The landlord makes the decision.
d. The tenant makes the decision. - (Correct Answer)d. The tenant makes the decision.
你是想要一篇“眼睛容易阅读
的”中文文章
**When there's an option period in play, the lease can be renewed at the sole discretion of the
tenant. The landlord has no say in whether the option will be exercised (or not).
Gary leases a commercial building and pays all expenses related to the building, including taxes
and insurance. Gary has a ______.
a. Gross lease
b. Net lease
c. Percentage lease
c. Sublease - (Correct Answer)b. Net lease
**With a net lease, the tenant pays some, or all (in the case of a triple net lease), expenses.
, Which of these is a static risk?
a. A decline in economic conditions in the area
b. Change in tax code
c. Fire damaging the building
d. Market change - (Correct Answer)c. Fire damaging the building
**Static risks are those where the effect can be lessened with insurance. This includes vandalism,
theft, fire, and accident liability.
How many dwelling units does a multi-family residential property have?
a. Five or more
b. More than one but fewer than six
你是想要一篇“眼睛容易阅读
c. One to four 的”中文文章
d. Two or more - (Correct Answer)d. Two or more
**A multi-family residential property has two or more dwelling units.
Which REIT type specializes in owning certain building types, such as apartments or office
buildings?
a. Commercial cap
b. Equity
c. REMTs
d. Tax-deferred - (Correct Answer)b. Equity
(VERSIONS A & B) 2024-2025 ACTUAL EXAM 300 REAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS
Steven put down $10,000 toward a property's purchase price, financed the rest, and now has a
cash flow of $2,800 after repairs and debt service. What's his ROI?
a 21%
b 26%
c 28%
d 32% - (Correct Answer)c 28%
Return on investment or ROI = cash flow ÷ cash investment. $2,800 ÷ $10,000 = 28%.
你是想要一篇“眼睛容易阅读
的”中文文章
What's a legal agreement or promise made between two parties?
a. A consideration
b. A covenant
c. A handshake
d. A negotiation - (Correct Answer)b. A covenant
A legal agreement or promise made between two parties is a covenant.
Which type of commercial property offers parking surrounding the outside of the property, but
also indoor parking beneath the building?
a. Community shopping center
,b. Neighborhood shopping center
c. Regional shopping center
d. Strip store - (Correct Answer)c. Regional shopping center
**Regional shopping centers are usually enclosed, with stores facing inward and connected by a
common walkway. Parking is available surrounding the outside of these centers, although some
have indoor parking beneath the building, as well.
During the option period to renew a lease, who determines whether the option will be exercised?
a. Either the landlord or the tenant can make the decision.
b. It must be mutually agreed to by both the landlord and the tenant.
c. The landlord makes the decision.
d. The tenant makes the decision. - (Correct Answer)d. The tenant makes the decision.
你是想要一篇“眼睛容易阅读
的”中文文章
**When there's an option period in play, the lease can be renewed at the sole discretion of the
tenant. The landlord has no say in whether the option will be exercised (or not).
Gary leases a commercial building and pays all expenses related to the building, including taxes
and insurance. Gary has a ______.
a. Gross lease
b. Net lease
c. Percentage lease
c. Sublease - (Correct Answer)b. Net lease
**With a net lease, the tenant pays some, or all (in the case of a triple net lease), expenses.
, Which of these is a static risk?
a. A decline in economic conditions in the area
b. Change in tax code
c. Fire damaging the building
d. Market change - (Correct Answer)c. Fire damaging the building
**Static risks are those where the effect can be lessened with insurance. This includes vandalism,
theft, fire, and accident liability.
How many dwelling units does a multi-family residential property have?
a. Five or more
b. More than one but fewer than six
你是想要一篇“眼睛容易阅读
c. One to four 的”中文文章
d. Two or more - (Correct Answer)d. Two or more
**A multi-family residential property has two or more dwelling units.
Which REIT type specializes in owning certain building types, such as apartments or office
buildings?
a. Commercial cap
b. Equity
c. REMTs
d. Tax-deferred - (Correct Answer)b. Equity
