Module 6

Question 1

is a tangible asset and a type of real property

Answer 1

real estate

Question 2

includes intangible assets like investments, along with tangible assets
such as furniture and fixtures like a dishwasher

Answer 2

personal property

Question 3

Types of Real Estate

Answer 3

1. Residential
2. Commercial
3. Industrial

Question 4

includes undeveloped land, houses, condominiums, and
townhouses. The structures may be single-family or multifamily dwellings and may be
owner-occupied or rental properties.

Answer 4

residential real estate

Question 5

includes non-residential structures such as office buildings,
warehouses, and retail buildings. These buildings may be free-standing or in shopping
malls.

Answer 5

commercial real estate

Question 6

includes factories, business parks, mines, and farms. These
properties are usually larger in size and locations may include access to transportation
hubs such as rail lines and harbors

Answer 6

industrial real estate

Question 7

involves the purchase, ownership, management, rental
and/or sale of real estate for profit, improvement of realty property as part of a real estate
investment strategy is generally considered to be a sub specialty of real estate investing

Answer 7

real estate investing

Question 8

Borrowing to finance a real estate investment is more expensive than borrowing to
buy one’s own home, often

Answer 8

o.5-1.5%

Question 9

There is more risk because the investor does not live at the property. The
minimum down payment for investors is often

Answer 9

20-25%

Question 10

This occurs when a seller is willing to self-finance a loan by accepting a
promissory note from buyer who makes monthly mortgage payments. No lending agency
is involved. Investing buyers pay higher interest rates for seller financing. The seller may
accept little or no down payment in exchange for an even higher interest rate, perhaps 1
½ to 2 ½ percent above conventional mortgage rates. Owner-financed deals can be
transacted very quickly for investors.

Answer 10

seller financing or owner financing

Question 11

With this approach, you seek a property that needs repairs but has good underlying value.
You buy this fixer upper at a favourable price and sweat by spending many hours
cleaning, painting, and repairing it to rent or sell at a profit.

Answer 11

sweat equity property.

Question 12

are cultural artifacts that have value because of their beauty, age,
scarcity, or popularity. They include baseball cards, posters, sports memorabilia, guns,
photographs, paintings, prints, ceramics, comic books, watches, lunchboxes and so on

Answer 12

collectibles