Chapter 12: Investing and Other Broker-Related Fields Flashcards
During one of these periods, the cost of everything rises, including real estate.
Inflationary period
An individual who, for compensation or gain (or in the expectation of) takes a residential mortgage loan application and/or offers/negotiates terms of a residential mortgage loan.
This individual also is usually the borrower’s main point of contact throughout the entire home loan process.
Mortgage loan originator (MLO)
A formal declaration before a duly authorized officer, by a person executing an instrument that such execution is his act and deed.
Acknowledgement
The real estate law defines the sale of a business as this.
Business opportunity
In California, an apartment complex with 16+ units requires this.
On-site property manager
An allowance for vacancies and uncollectible rents.
Vacancy factor
The result of dividing the net operating income by the selling price.
Capitalization (cap) rate
In a business with good reputation, the customer base with the expectation of continued public patronage.
Goodwill
This person is engaged in the secondary market, in addition to a host of activities that come under the definition of real property securities.
Real property securities dealer
As short-term lenders, this entity is very active in the urban mortgage market.
Commercial banks
Includes all first and junior trust deeds that comprise the financing for the purchaser.
Loan
The amount the buyer is to pay towards the purchase price.
Down payment
Selling a property for more than it’s worth – a function of supply demand.
Appreciation
These expenses do not vary depending on the occupancy of the property.
Fixed expenses
These funds are set aside for replacing short-lived components of the property.
Reserves for replacement
Under these terms, the seller agrees that he will not open a competing business for a period of time within a specified geographical area.
Covenant not to compete
A property temporarily generates rents for other than its future zoned use.
Interim use
This type of bank specializes in housing loans, particularly for single-family dwellings up to four units.
Savings bank
This house is built on a steel chassis and equipped with wheels so that it can be pulled by a truck from the factory to a dealers lot and then to the site in a park or on private land
Manufactured home
These companies often invest in large commercial projects, like shopping malls, and serve markets far away from their home offices.
Life insurance companies
These expenses include fixed and variable expenses, as detailed in the bottom half of the income property statement.
Operating expenses
The difference between the income generated from an income property and expenses associated with it, including taxes, mortgage payments, and operating expenses.
Cash flow
A type of real estate investment company that sells ownership shares. The qualified company itself pays no income taxes if at least 90% of the income is distributed to the owners/participants.
REITs
The total income that property is capable of producing at full occupancy, without any deductions for expense.
Potential Gross Income
