TEXAS SAE REAL ESATE INVESTMENT COURSE
The capital gains exclusion for couples filing jointly who have lived in their primary residence at least two of the five years immediately preceding the sale of the home is up to $500,000. What is the capital gains exclusion for single taxpayers?
$250,000
In addition to the two anchor tenants, how many tenants does a community shopping center normally have?
15 to 40
The IRS requires foreign property owners to withhold _____ of the gross purchase price when they sell real property they own in the U.S.
15%
What percentage of a neighborhood shopping center's gross leasable space does the major tenant lease?
30 to 50
our client Joseph has a commercial income-producing property. How long does he depreciate this property?
39 years.
Santiago plans to develop a super-regional shopping center. What size lot will he need
60 -120 acres
What does cash-on cash return mean?
A comparison of before-tax cash flow to cash invested
What's the legal agreement or promise made between two parties.
A covenant
Your client, Gabriel, has invested in a rental property. He looks at his property's operating statement, tweaks the numbers based on his knowledge of the market, and re-works the statement. Gabriel has created ______.
A pro-forma statement
Cap rate _____
A way of quickly valuing income-producing properties in comparison to other properties
What's the definition of appreciation?
An increase in property value
What's a land banker?
An investor who holds land in inventory.
Which of the following investors is exempt from fair housing laws?
An investor who owns fewer than three single-family homes.
Which of the following scenarios describes an example of unilateral rescission?
Bobby, the buyer, makes an offer on a house that does not meet the appraisal contingency. He cancels the sale.
Which type of corporation involves a double taxation
C-corporation
In terms of investment, liquidity means an investment
Can be easily converted to cash
Which class of office building is aimed at tenants requiring functional space at below-average rents for the area?
Class C
What do cooperative owners receive to demonstrate ownership?
Corporation shares and a proprietary lease.
Rob purchased a property five years ago for $200,000. He put down $50,000 and financed $150,000. Today, the property is valued at $250,000. What is this an example of?
Equity Build up
Joey wants to invest in a regional shopping center. What size trade area can he plan to service?
Four -20 miles
Stu is buying Freddie's property. What must occur for the transfer of title to take place?
Freddie must intend to convey the property to stu
What phrase describes the amount that todays dollars grows over time?
Future value
Rhonda and Oliver bought an old schoolhouse with the hope of transforming it into a residence. They owned the property as joint tenants. After Oliver died, how did Rhonda own the building?
In severalty
Amanda wants to know how long, on average, homes are staying on the market before they sell. What market indicator can give her this information?
Inventory Rates
If an investor realized a gain of $140,000 on the sale of an investment property and the depreciated amount was $20,000, what would happen?
Investor will pay 25% on the $20,000 and either 15% or 20% on the other $120,000.
What is it about strip stores that makes them so appealing to small investors.
It's easier to secure a mortgage loan for a small project.
Participants in this temporary organisation are looking for profit. They may be corporation, partnerships, LLC or other entities
Joint Ventures
Which one of the following statements is true about land trusts?
Land trust generally continue for a specified term, such as 10,20, or 30 years
Private loan companies may place a ______ on the property for which the loan is being taken.
Lien
In this type of partnership, non-general partners are limited in their authority.
Limited liability partnership
What's interest
Money paid for the use of money
Monica and Daniel Nicks have applied and been approved for a mortgage loan. Who will provide them the money for the loan?
Mortgage Banker
Which of the following Real Estate Investment Trusts focus on lending money for mortgages and investing in mortgage-backed securities?
Mortgage REIT
Which individual matches borrowers with the lender and loan option that best meet their needs?
Mortgage broker
With a ______ lease, the tenant pays the rent and some expenses related to the property
Net Lease
How many major tenants does a neighbourhood shopping center normally have?
One
Property taxes generate approximately ____ of the local government revenue.
One third
For the vast majority of loans, a single late____ does not automatically mean the loan has gone into default.
Payment
When does substantial performance of a contract occur?
One party has met most but not all of the terms specified in the contract, and may be required to pay damages for the terms not met.
Which clause, when included in a commercial lease, allows tenants to decide if they want to continue their lease agreement with the owner?
Option to renew, not the lease renewal
Life insurance companies sometimes like to insure their investment in commercial projects by insisting on an equity position. This is known as ______ financing.
Participation
Which of the following best describes foreclosure by entry and possession?
Petition to enter, repossession, notice of eviction
Which of the following statements about topography in land investments is true?
Physical features of the land factor into development cost.
A neighborhood that has been disintegrating for some time is undergoing a rejuvenation, with several properties on one block being heavily renovated or entirely rebuilt. As a result, even the properties that are still old and shabby increase somewhat in value. This is the principle of ________.
Progression
When an investment property is sold, three taxes that apply are transfer tax, capital gains, and _____
Recaptured depreciation
Samuel is selling a 99-lot subdivision across state lines. His rival, Max, has a 123-lot subdivision that he's selling across state lines. What must Max do that Samuel doesn't have to do?
Register the project with the consumer financial protection bureau.
A property's value is dropping because the neighboring property's yard is filled with trash. What's this an example of?
Regression
Which stage of the investment cycle is an investor in when there is depreciated basis and tax-deferral through 1031 exchanges
Reversion
What type of impact is e-commerce having on commercial property investments
Significant
Brandon recently purchased an old warehouse building. This building will serve as a hub for local deliveries of fruits and vegetables within the state. During its first week in operation, one of the delivery drivers was involved in an accident that spilled coconuts all over the road and shut down the interstate for hours. What type of risk is this?
Static static risk are those where the effect can be lessened with insurance. This includes vandalism, theft, fire, and accident liability.
Blane owns a barbershop. He polls his customers and learns that they tend to come from less than a mile away. That's probably because Blane's store is in which type of location?
Strip mall
Some countries have banks that issue loans for U.S. real estate purchases. What are the main countries that participate?
Taiwan, the U.K., and Canada
Tyrone is looking for a single-lot investment opportunities. What would be most important for him to research?
The community's growth pattern
Which one of these would void a deed that's intended to convey property?
The grantor is not mentally competent.
Jake and Eddie have a promissory note agreement that states that Jake will pay back the money he owes Eddie, with interest. Who's required to sign the note?
The maker only
What is maximum equity?
The maximum amount the borrower is willing/ able to invest.
What is capital risk?
The risk an investor can not secure financing at an affordable rate.
With a promotional land sale agreement, who usually carries back a portion of the purchase in the form of a purchase-money mortgage or an installment contract?
The seller
Why is it important for buyers of a residential property to understand how taxes relate to the whole ownership lifecycle?
They may be able to take advantage of tax deductions
Which of the following statements is true regarding developers who plan to allow FHA financing in their subdivisions?
They mus follow the FHA minimum building standards.
Which ADA title is concerned with the accessibility of public accommodations?
Title III
When discounted cash flow analysis is used, income that will be received in the future is discounted. Why?
To account for inflation and the time value of money
All trust have three parties: the trust or, the beneficiary and___
Trustee
