Real Estate 306 Exam 2 2025/2026 Exam
Questions and Answers 100%
1
Guaranteed Success | Already Rated A+
foreclosure - 🧠 ANSWER ✔✔the action of taking possession of a
mortgaged property when the mortgagor fails to keep up their mortgage
payments
lien - 🧠 ANSWER ✔✔a claim or legal rights against assets that are typically
used as collateral to satisfy a debt
term sheet - 🧠 ANSWER ✔✔a non-binding financing commitment
credit committee - 🧠 ANSWER ✔✔a loan committee that consists of upper
management of a lending institution with the authority to approve loans that
the initial loan officer does not have the authority to approve
special purpose entity (SPE) - 🧠 ANSWER ✔✔an entity created for a
specific purpose such as a limited liability company (LLC) or limited
partnership (LP)
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,operating agreement - 🧠 ANSWER ✔✔part of the organizational documents
that identifies the relationship between investors/owners/developer is a
2
deal and spells out their percentage ownership interest and any rights
responsibilities and profit splits
mortgage - 🧠 ANSWER ✔✔a type of loan used to purchase real estate,
where the borrower agrees to pay the lender over time, typically in a series
of regular payments that are divided into principal and interest the property
then serves as collateral to secure the loan
note - 🧠 ANSWER ✔✔also known as a mortgage note or promissory note,
is a legal document that binds the borrower to repay the mortgage within an
agreed period and outlines the terms of loan
guaranty - 🧠 ANSWER ✔✔promise by a third part entity, or individual, to
pay or preform the obligation of the borrower
amortization - 🧠 ANSWER ✔✔the process of reducing or paying off the
principle of the loan, typically in regular installments
term - 🧠 ANSWER ✔✔the amount of time during which a borrower repays a
loan if fully amortizing, or until the outstanding loan balance, or balloon
payment, is due if non-amortizing (ie, interest only) or partially amortizing
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, principle - 🧠 ANSWER ✔✔the amount of capital borrowed (the return of
capital for the bank)
3
interest rate - 🧠 ANSWER ✔✔the cost of debt, i.e, what the borrower pays
the lender for using its funds (the return on capital for the bank) typically
made up of the index rate plus margin
index - 🧠 ANSWER ✔✔typically a widely available quoted rate such as
WSJ prime rate, (London interbank offering rate) or SOFR (secure
overnight financing rate) which reflects the lenders cost of capital and is
used to determining a portion of the interest rate for a loan
margin - 🧠 ANSWER ✔✔also called spread, is the portion of the interest
rate for a commercial real estate loan that represents the lenders premium
for the risk they are taking loaning the money
loan to value (LTV) - 🧠 ANSWER ✔✔the ratio of loan to value of the asset
represented as a percentage
debt service coverage ratio (DSCR) - 🧠 ANSWER ✔✔also known as debt
coverage ratio (DCR) is the ratio of operating income available to debt
serving for principle and interest
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
Questions and Answers 100%
1
Guaranteed Success | Already Rated A+
foreclosure - 🧠 ANSWER ✔✔the action of taking possession of a
mortgaged property when the mortgagor fails to keep up their mortgage
payments
lien - 🧠 ANSWER ✔✔a claim or legal rights against assets that are typically
used as collateral to satisfy a debt
term sheet - 🧠 ANSWER ✔✔a non-binding financing commitment
credit committee - 🧠 ANSWER ✔✔a loan committee that consists of upper
management of a lending institution with the authority to approve loans that
the initial loan officer does not have the authority to approve
special purpose entity (SPE) - 🧠 ANSWER ✔✔an entity created for a
specific purpose such as a limited liability company (LLC) or limited
partnership (LP)
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
,operating agreement - 🧠 ANSWER ✔✔part of the organizational documents
that identifies the relationship between investors/owners/developer is a
2
deal and spells out their percentage ownership interest and any rights
responsibilities and profit splits
mortgage - 🧠 ANSWER ✔✔a type of loan used to purchase real estate,
where the borrower agrees to pay the lender over time, typically in a series
of regular payments that are divided into principal and interest the property
then serves as collateral to secure the loan
note - 🧠 ANSWER ✔✔also known as a mortgage note or promissory note,
is a legal document that binds the borrower to repay the mortgage within an
agreed period and outlines the terms of loan
guaranty - 🧠 ANSWER ✔✔promise by a third part entity, or individual, to
pay or preform the obligation of the borrower
amortization - 🧠 ANSWER ✔✔the process of reducing or paying off the
principle of the loan, typically in regular installments
term - 🧠 ANSWER ✔✔the amount of time during which a borrower repays a
loan if fully amortizing, or until the outstanding loan balance, or balloon
payment, is due if non-amortizing (ie, interest only) or partially amortizing
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
, principle - 🧠 ANSWER ✔✔the amount of capital borrowed (the return of
capital for the bank)
3
interest rate - 🧠 ANSWER ✔✔the cost of debt, i.e, what the borrower pays
the lender for using its funds (the return on capital for the bank) typically
made up of the index rate plus margin
index - 🧠 ANSWER ✔✔typically a widely available quoted rate such as
WSJ prime rate, (London interbank offering rate) or SOFR (secure
overnight financing rate) which reflects the lenders cost of capital and is
used to determining a portion of the interest rate for a loan
margin - 🧠 ANSWER ✔✔also called spread, is the portion of the interest
rate for a commercial real estate loan that represents the lenders premium
for the risk they are taking loaning the money
loan to value (LTV) - 🧠 ANSWER ✔✔the ratio of loan to value of the asset
represented as a percentage
debt service coverage ratio (DSCR) - 🧠 ANSWER ✔✔also known as debt
coverage ratio (DCR) is the ratio of operating income available to debt
serving for principle and interest
COPYRIGHT©PROFFKERRYMARTIN 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE.
PRIVACY STATEMENT. ALL RIGHTS RESERVED
