Texas SAE Real Estate Investment 2: Latest Study Guide & Exam Prep (2024)

Page 1 of 81


TEXAS SAE REAL ESTATE INVESTMENT 2 LATEST

VERSIONS (VERSIONS A & B) ACTUAL EXAM 300 REAL

EXAM QUESTIONS AND CORRECT DETAILED ANSWERS

WITH RATIONALES (VERIFIED ANSWERS)|ALREADY

GRADED A+

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%

.....ANSWER.....c 28%

,Page 2 of 81




Return on investment or ROI = cash flow ÷ cash investment.

$2,800 ÷ $10,000 = 28%.

What's a legal agreement or promise made between two

parties?




a. A consideration

b. A covenant

c. A handshake

d. A negotiation

.....ANSWER.....b. A covenant




A legal agreement or promise made between two parties is a

covenant.

,Page 3 of 81


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

.....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.

, Page 4 of 81


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.

.....ANSWER.....d. The tenant makes the decision.




**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).