Chapter 1 Flashcards
What distinguishes property management from real estate asset management?
Property management involves operational tasks like maintenance and tenant management, while real estate asset management focuses on optimizing investment returns through strategic decision-making.
In the context of financial services, what does an “advisory service provider” typically refer to?
Firms or professionals offering guidance and recommendations on financial matters
Which group of professionals in the real estate industry focuses primarily on the creation of new properties?
Developers
Who among the following professionals in the real estate industry is primarily tasked with finding clients interested in buying or selling properties?
Real estate agents
What is typically meant by the term “commercial property” in real estate?
Non-residential properties used for business purposes
Which governmental body is primarily responsible for regulating real estate licensees?
State real estate commission or board
What is an investment
property?
Properties purchased to earn a return on investment through rental income, future resale, or both. Purchased with the goal of generating income or building wealth over time.
What is a commercial
property ?
Properties that are used for business purposes and generate income.
The primary purpose is to generate profit through rental income or capital appreciation.
Examples include office buildings, retail stores, warehouses, hotels, and more.
What is a residential
property?
Properties that are used for habitation - providing a living space for individuals and families. Designed and intended for occupancy as homes.
What is the Real Estate Industry?
Creation, management, and demolition of every residence and business facility in the nation. Includes undeveloped land.
What is the largest single industry in American economy? What is the largest business within the industry?
Real Estate
Construction
What are the 6 real estate activities and property related functions?
1) Creation and Improvement
2) Management and Maintenance
3) Demolition
4) Investment Ownership
5) Regulation
6) Transfer
What is a Property Manager?
They/their staff oversee the day-to-day functions of specific properties on behalf of the owner. Must meet specific conditional and financial standards.
What is an Asset Manager?
They oversee groups of properties (portfolios) to achieve investment objectives.
What is the difference between a property manager and an asset manager?
Property managers are focused on overseeing day-to-day functions while Asset managers are focused on overseeing overall return on investment(s).
