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Intro to Real Estate > Unit 1: Real Estate Specializations > Flashcards

Unit 1: Real Estate Specializations Flashcards

1
Q

Brokerage

A
  1. The business of bringing people together in a real estate transaction
  2. Activities: help others buy, sell or lease real property
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2
Q

Salesperson/Broker-associate/Provisional broker

A

A person employed by or associated with a broker and may not provide brokerage services independently

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3
Q

Appraisal

A

The process of developing an opinion of a property’s market value, based on established methods and the appraisers professional judgement
(Appraisers must be licensed by the state)

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4
Q

Property Management

A

The property manager is a person or company hired to maintain and manage property on behalf of the property owner
-The Property Manager must be a licensed real estate broker
-Brokerage firms may provide property management services

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5
Q

Financing

A

The business of providing funds for real estate sales transactions

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6
Q

Mortgage Loan Originators

A

Registered with a Nationwide Multi state Licensing System
Licensed by state

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7
Q

Subdivision

A

Dividing a single property into smaller parcels

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8
Q

Development

A

Site preparation, construction of structures, and other improvements

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9
Q

Home inspection

A

Combines a practitioners interest in real estate with skills and training in construction trades, some states require licensing

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10
Q

Counseling

A

-Provide clients with information needed to make informed decisions
-Help clients choose among the various alternatives involved in purchasing, leasing, using or investing in real estate

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11
Q

What are the six categories of real estate?

A
  1. Residential
  2. Commercial
  3. Mixed use
  4. Industrial
  5. Agricultural
  6. Special purpose
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12
Q

Residential Real Estate

A

Where people live
Single-family and multifamily housing

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13
Q

Commercial Real Estate

A

Office, Retail, Entertainment, Parking Structures

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14
Q

Mixed Use Real Estate

A

Commercial and residential uses in the same building or development

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15
Q

Industrial Real Estate

A

Warehouse, Manufacturing, Production Facilities, Power Plants

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16
Q

Agricultural Real Estate

A

Farms, Timberland, Ranches, and Orchards

17
Q

Special Purpose Real Estate

A

Places of worship, schools, museums, cemeteries, municipal service buildings, parks
(Can be privately and publicly owned)

18
Q

What are the 3 factors affecting supply of real estate

A
  1. Demand
  2. Construction costs
  3. Interest rates
19
Q

What are the 3 factors affecting demand of real estate?

A
  1. Demographics
  2. Economy
  3. Wages
20
Q

Three Deductions allowed on a first and second residence

A
  1. Property Taxes
  2. Mortgage Interest
  3. Points paid on loans used to improve or acquire (must itemize to take the deduction on tax return
21
Q

Capital Gains
Short term gain

A

Property held 12 months or less is taxed at ratepayers ordinary income tax rate

22
Q

Capital Gains
Long term gain

A

Property held more than 12 months is taxed at a different rate than ordinary income

23
Q

Maximum gain from sale for single taxpayer

A

$250,000

24
Q

Maximum gain from sale for joint taxpayer

A

$500,000

25
Q

How long does a taxpayer have to own and occupy property prior to sale to be excluded from tax?

A

Two of the five years, does not have to be consecutive

26
Q

Depreciation

A

AKA Cost Recovery

27
Q

What is the residential property time allowance over for depreciation updates?

A

27.5 years

28
Q

What is the commercial property time allowance over for depreciation updates?

A

39 years

29
Q

What are the 4 benefits of real estate investment

A

A Cash Flow
B Tax Benefits
C Potential Appreciation
D Principal reduction

30
Q

Appreciation

A

Increased value

Intro to Real Estate (7 decks)

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