TEXAS SAE REAL ESATE INVESTMENT
COURSE EXAM 2025 QUESTIONS AND
ANSWERS
Which of the following options describes principal as it relates to loans?
Amount of payment that will be applied to the interest
Amount of payment that will be applied to the loan balance
Amount to be sent as payment each month
Loan balance before the monthly payment is applied - ANS Amount of payment that will be
applied to the loan balance
What is financial risk?
The risk that an investor cannot secure financing at an affordable rate
The risk that is directly related to leverage
The risk that the property has a bad location
The risk that the required return on investor capital will not be met - ANS The risk that is
directly related to leverage
How many major tenants does a neighborhood shopping center normally have?
Four
One
Three
Two - ANS 1
What's simple interest?
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, Interest that's calculated based on the current principal of the loan amount multiplied by the
interest rate
Interest that's calculated based on the total amount of the original loan in addition to the
amount calculated for each payment
Interest that's calculated based on the total sales prince of the loan multiplied by the interest
rate
Interest that's reinvested into an account that then earns interest - ANS Interest that's
calculated based on the current principal of the loan amount multiplied by the interest rate
The risk that an investor cannot secure financing at an affordable rate is called ______ risk.
Business
Capital
Financial
Leverage - ANS capital
Craig's loan is secured by a mortgage. Who holds legal title when this security instrument is
used?
A third-party trustee
Craig
Craig's lender
The seller - ANS Craig
When a borrower has paid off the loan, how is the release handled if the security instrument is
a deed of trust?
The lender executes and records a satisfaction of mortgage and returns the note to the
borrower.
The lender returns the note and deed of trust documents to the borrower.
The trustee executes and records a deed of reconveyance and the lender returns the note to
the borrower.
The trustee files for a release of lien and the lender returns the note to the borrower. -
ANS The trustee executes and records a deed of reconveyance and the lender returns the
note to the borrower.
2 Copyright ©BRIGHSTARS ALL RIGHTS RESERVED 2025
COURSE EXAM 2025 QUESTIONS AND
ANSWERS
Which of the following options describes principal as it relates to loans?
Amount of payment that will be applied to the interest
Amount of payment that will be applied to the loan balance
Amount to be sent as payment each month
Loan balance before the monthly payment is applied - ANS Amount of payment that will be
applied to the loan balance
What is financial risk?
The risk that an investor cannot secure financing at an affordable rate
The risk that is directly related to leverage
The risk that the property has a bad location
The risk that the required return on investor capital will not be met - ANS The risk that is
directly related to leverage
How many major tenants does a neighborhood shopping center normally have?
Four
One
Three
Two - ANS 1
What's simple interest?
1 Copyright ©BRIGHSTARS ALL RIGHTS RESERVED 2025
, Interest that's calculated based on the current principal of the loan amount multiplied by the
interest rate
Interest that's calculated based on the total amount of the original loan in addition to the
amount calculated for each payment
Interest that's calculated based on the total sales prince of the loan multiplied by the interest
rate
Interest that's reinvested into an account that then earns interest - ANS Interest that's
calculated based on the current principal of the loan amount multiplied by the interest rate
The risk that an investor cannot secure financing at an affordable rate is called ______ risk.
Business
Capital
Financial
Leverage - ANS capital
Craig's loan is secured by a mortgage. Who holds legal title when this security instrument is
used?
A third-party trustee
Craig
Craig's lender
The seller - ANS Craig
When a borrower has paid off the loan, how is the release handled if the security instrument is
a deed of trust?
The lender executes and records a satisfaction of mortgage and returns the note to the
borrower.
The lender returns the note and deed of trust documents to the borrower.
The trustee executes and records a deed of reconveyance and the lender returns the note to
the borrower.
The trustee files for a release of lien and the lender returns the note to the borrower. -
ANS The trustee executes and records a deed of reconveyance and the lender returns the
note to the borrower.
2 Copyright ©BRIGHSTARS ALL RIGHTS RESERVED 2025
