Chapter 5 & 6 Flashcards
Municipal Bonds
government agency issue this bond/ for financing real estate projects / and community improvement is sewers, parks,schools,..etc.
Personal easement in Gross
Granted to private party for his lifetime, Irrevocable during this period but terminate on grantee’s death, this right may not be sold, transferred, or willed.
Non-institutional lender
They are not regulated by state or federal agencies but they make real estate loans.
HYBRID Trusts
Equity + mortgage Trust = Give investor chance to earn income from variety sources !
Endowment
Transfer of MONEY or A PROPERTY to be donated to an institution, / stipulation to be invested / keep the principal intact.
Financial intermediaries
Institutional lender pool the funds of their depositors, Invest the funds in the real estate loans.
Secured Loan
Note which include a mortgage or a deed of trust.
MUTUAL SAVING BANKS !
- they are saving institutions.
*They do NOT issue stocks! - Mutually owned by their investors managed by board of directors or trustees who distribute earnings to the investors as dividends rather than an interest.
REIT
real estate investment Trust, formed in 196 0=> Federal Tax
Small investors combines their resources with others to raise venture capital
3 types of REIT exists.
REMTS
Real estate mortgage trusts.
BUY, SELL mortgage loans!
(They Profits earned from buying and selling mortgage loans, loan origination fees, mortgage interests)
Pension Funds :)))
contribution collected from workers , employers, and invested to create large money POOL for worker’s retirements.
REIT => ( mortgage trust type)
investors loan their money for = > commercial properties / they get their income by loan origination fee, interest and buying and selling mortgages !
Physical Encumbrances
Easements, encroachments and restrictions.
Financial encumbrances
one that affect title: judgement, mortgage, mechanic liens .
