Unit 1 - Intro to Real Estate

Question 1

What are 6 types of Real Property

Answer 1

Residential, Commercial, Mixed Use, Industrial, Agricultural, Special Purpose

Question 2

What is Counseling

Answer 2

Providing clients with competent and independent advice based on sound professional judgment.

Question 3

What are Add-Ons

Answer 3

Additional home examination of mold, radon, termites, etc. by home inspector

Question 4

What is a Home Inspector

Answer 4

Conducts thorough visual survey of property’s structure systems and site conditions

Question 5

What is a subdivision

Answer 5

Dividing of a single property in to small units

Question 6

What are 8 realestate specializations

Answer 6

Brokerage, Appraisal, Property Management, Financing, Subdivision-Development-Builder, Home Inspection, Counseling, Education

Question 7

What is M.L.O.

Answer 7

Mortgage Loan Originator

Question 8

What is financing

Answer 8

Business of providing the funds that make real estate transactions possible.

Question 9

What is a property manager

Answer 9

Person or company hired to maintain and manage property on behalf of property owner.

Question 10

What is an appraisal

Answer 10

Process of developing an opinion of a property’s market value based on established methods and professional judgment.

Question 11

What is a broker

Answer 11

Person or company licensed to buy, sell, exchange, or lease real property for others for a fee.

Question 12

What is brokerage

Answer 12

The business of bringing people together in a real estate transaction

Question 13

What is L.T.V.

Answer 13

Loan-To-Value, need 80% and is loan divided by value

Question 14

What is rate of return

Answer 14

Amount of return on investment. Put in $60, Value is $80, Made $20. 20 divided by 60 = 33% R of R

Question 15

What two characteristics govern way market reacts to pressure of supply and demand

Answer 15

Uniqueness - No property exactly alike
Immobiliity - Cannot be relocated to satisfy demand

Question 16

What factors affect real estate supply

Answer 16

-Labor force, construction, material costs
-Government controls and financial policies
-Local government factors

Question 17

What factors affect real estate demands

Answer 17

-Demographics
-Employment and wage levels
-Population

Question 18

What are capital gains

Answer 18

Profit from selling property
Tax exclusion for married is 500k, single 250k and must be principle residence for 2/5 years

Question 19

What is leverage

Answer 19

Slang for value, use of borrowed money to finance investment

Question 20

Supply Increase vs. Demand Increase

Answer 20

Supply increases but demand is stable, prices are down
Demand increases but supply is stable, prices increase

Question 21

What are advantages of real estate investment
CCLEARTD

Answer 21

Control, Capitol Gains, Leverage, Equity build-up, Appreciation, Rate of Return, Tax benefits, Depreciation

Question 22

What are benefits of exchanging properties

Answer 22

Avoid federal taxation on capitol gain by exhanging property for “like kind” (investment-investment)

Question 23

What are disadvantages of real estate investment

Answer 23

Risk, Active Management (collecting rent, Liquidity

Question 24

What are Supply and Demand

Answer 24

Supply is quantity of goods sold at a given price.
Demand is quantity of goods consumers are willing and able to buy at a given price.

Question 25

What is Equalibrium

Answer 25

When supply and demand are equal

Question 26

What is a market

Answer 26

When goods can be bought and sold

Question 27

What are 7 types of housing
SCCCAMP

Answer 27

Single Family Detached, Condo, Co-op, Converted Use, Apartments, Mixed Use Development (MUD), Planned Use Development (PUD)