Texas SAE: Real Estate Investment
Questions with 100% Correct Answers
If a borrower fails to keep homeowners insurance of the collateral property,
what actions can the lender take? Correct Answer: Place Lender-aquired
insurance on the property and bill the borrower
Leases my be terminated by expiration, eviction or ______? Correct Answer:
Mutual Agreement
is a dynamic risk Correct Answer: Market Change
How many dwelling units does a commercial residential property have Correct
Answer: 5 or more
the estate would need to be worth _____________ to be subject to estate tax.
Correct Answer: $11 million
With this arrangement, the developer preleases to a financially strong tenant to
build a structure to the tenant's specifications. This arrangement assures the
tenant that they will have the space they require when needed and it assures
the owner/builder that the space will be fully leased upon completion. Correct
Answer: Build to suit
Regional shopping center lot building size Correct Answer: 40-100 acres and
average size of 591825 sq ft
the ease with which an asset can be converted into cash Correct Answer:
Liquidity
Formula used to calculate gross rental income for an office building Correct
Answer: Productive square feet x rental rate per square foot = gross rental rate
, a REIT that earns income for its investors through rent collection or the sale of the
properties in their portfolio Correct Answer: Equity REIT
Income
capitalization technique; value is estimated
by dividing the net operating
income by the overall capitalization rate. Coverts a single years expected
income into a market value Correct Answer: Direct Capitalization Method
When a land trust expires, the trustee must either extend the trust term or sell the
real estate and ______. Correct Answer: Give the proceeds to the beneficiary
the amount of money you have now Correct Answer: Present value
A legal action to compel a party to carry out the terms of a contract. Correct
Answer: Specific Performance
A lease in which the tenant or lessee is responsible for paying a portion of or all
of the common expenses related to real estate ownership, in addition to base
rent. Correct Answer: Triple Net Lease
lease in which the tenant pays some or all of the operating expenses of the
property in addition to rent Correct Answer: Net Lease
One that bases the amount of rent on a percentage of the sales generated in
the space. Correct Answer: Percentage Lease
Tenant pays rents, landlord pays all expenses of property; most common form of
residential lease Correct Answer: Gross lease
Questions with 100% Correct Answers
If a borrower fails to keep homeowners insurance of the collateral property,
what actions can the lender take? Correct Answer: Place Lender-aquired
insurance on the property and bill the borrower
Leases my be terminated by expiration, eviction or ______? Correct Answer:
Mutual Agreement
is a dynamic risk Correct Answer: Market Change
How many dwelling units does a commercial residential property have Correct
Answer: 5 or more
the estate would need to be worth _____________ to be subject to estate tax.
Correct Answer: $11 million
With this arrangement, the developer preleases to a financially strong tenant to
build a structure to the tenant's specifications. This arrangement assures the
tenant that they will have the space they require when needed and it assures
the owner/builder that the space will be fully leased upon completion. Correct
Answer: Build to suit
Regional shopping center lot building size Correct Answer: 40-100 acres and
average size of 591825 sq ft
the ease with which an asset can be converted into cash Correct Answer:
Liquidity
Formula used to calculate gross rental income for an office building Correct
Answer: Productive square feet x rental rate per square foot = gross rental rate
, a REIT that earns income for its investors through rent collection or the sale of the
properties in their portfolio Correct Answer: Equity REIT
Income
capitalization technique; value is estimated
by dividing the net operating
income by the overall capitalization rate. Coverts a single years expected
income into a market value Correct Answer: Direct Capitalization Method
When a land trust expires, the trustee must either extend the trust term or sell the
real estate and ______. Correct Answer: Give the proceeds to the beneficiary
the amount of money you have now Correct Answer: Present value
A legal action to compel a party to carry out the terms of a contract. Correct
Answer: Specific Performance
A lease in which the tenant or lessee is responsible for paying a portion of or all
of the common expenses related to real estate ownership, in addition to base
rent. Correct Answer: Triple Net Lease
lease in which the tenant pays some or all of the operating expenses of the
property in addition to rent Correct Answer: Net Lease
One that bases the amount of rent on a percentage of the sales generated in
the space. Correct Answer: Percentage Lease
Tenant pays rents, landlord pays all expenses of property; most common form of
residential lease Correct Answer: Gross lease
