Chapter 18 Real Estate Flashcards
Conservation of capital definition
Growing initial initial investment without losing any capital
The safer the investment the more slowly it gains in value is an example of a conservation of capital B management d liquidity E risk versus return
E risk versus return the more you want to gain in the more quickly the more you list risk risk losing it
How quickly you can turn your investment into cash is known as a tax benefits bmarket risk c business risk D liquidity
D liquidity
Getting more money out of your investment and you were originally put in is called a business risk b purchasing power C financial risk D appreciation
D appreciation
Tax benefits include
Being able to differ money and not spend them on tax dollars so they are available for another use
Changes in the demand for your investment resource because your investment to lose value and become ill liquid this is an example of a market risk b business Risk C purchasing power D financial risk
Market risk changes in demand for your invested resource because your investment to lose value and become illiquid
Money investment examples a deposit account B certificate of deposit C money funds D annuities E all of the above
D all of the above I’m on the investment is one in which the basic form of investment retains money investments are relatively safe with corresponding conservative rates of return
Real estate investments can be categorized into two categories what are those two categories
Non-income property such as a residential property or primary residence income property and property specifically for the investment rewards multi family residential properties office buildings reward comes in income appreciation leverage and tax advantages
That investments can be Bond’s notes mortgages in mutual funds are they more risky than stocks in real estate or less risky than stocks in real estate
That investments are less risky than stocks or real estate
Equity investments examples are stocks and mutual funds are they more riskier were less riskier than money and dad investments
Stocks and mutual funds also known as equity investments are more riskier than that investments and money
Definition of a real estate syndicate
Is a group of investors who combine resources to buy or develop and operate a property
In a limited partnership there is one general partner who organizes and operates and is responsible for the interest in the limited partners are known as
a passive investors
be general Partners
C syndicates
A passive investors are limited partners in a limited partnership did you not participate in operating the property
