RE: Sources of Funds

Equity REITs

- Deals in real estate sales only - Provides income from rent or sale of property

Mortgage REITs

- Earns income from interest dividends - Lends money for mortgages and invests in mortgage-backed securities - derives a portion of its income from interest dividends - involves both residential and commercial properties?

Hybrid REITs

- Earns income from rent or sale of property and interest dividends - Invests in both real estate and mortgage-backed securities

Sold

After bonds are ______, their value goes up and down with the market.

Municipal

An industrial development bond is a variety of ______ bond.

$15,000

Based on current law anyone can make an annual tax-free gift of up to $______ to any individual.

More than 70%

How much of a mutual savings bank's assets come from savings accounts?

Both the primary and secondary mortgage markets

In which U.S. market(s) do foreign lenders participate?

Participation

Joe works for a life insurance company that funds commercial investment projects and often insures these projects by insisting on an equity position. What type of financing does this describe?

Liquidity

Life insurance companies are more concerned with long-term stability of investments than they are ___________.

Charter

Mutual savings banks have limitations on their lending activities, as specified in their ______.

Workers

Mutual savings banks were created to serve ______ during the mid-19th century.

Corporate assets

Secured corporate bonds use ______ as collateral.

China

The largest group of foreign investors to date comes from where?

Have work visas and are looking for a home to purchase while they're in the U.S.

The three general groups of international buyers that real estate professionals may encounter are those who ______, those who are looking for a vacation home for when they travel to the U.S., and those who are looking for a luxury property as an investment.

The Credit Union Membership Access Act

What act became effective in 1999 allowing credit unions to solicit membership from much wider criteria.

The SAFE Act

What act was signed into law in 2008 and provides greater consumer protection and fraud protection for borrowers?

Bonds

What are used to secure funds for financing real estate projects.

Loan

What counts against a borrower's debt load?

Interim

What financing has shorter terms and higher interest rates compared to traditional financing?

Corporate

What type of bonds are credit instruments used to raise funds?

Commercial

What type of lenders mainly rely on demand deposits for their supply of funds?

Mutual Savings Banks

What were created to serve an emerging class of workers in the industrial expansion of the mid-19th century? They are mostly concentrated in the eastern United States.

With a contract for deed

What's the most common way that a seller can help a buyer come up with the funds to complete a real estate transaction?

They prefer to keep their business nearby, so they can monitor loans more efficiently

Where do mutual savings banks conduct business?

FDIC

Which banking-related entity shares similarities with the purpose and function of the NCUA?

NCUA

Which organization manages and charters credit unions?

Municipal bond

Which type of bond is used to pay for community improvements? Like schools are street improvements.

Sellers

Who can finance a portion of the sales price with a carryback loan or other means?

Mortgage bankers

Who originate new loans, collect payments, inspect collateral, and supervise foreclosures when necessary?

Foreign Lenders

Who provide real estate loans for purchases in the U.S?

Mortgage brokers

Who seldom invest capital in a loan and don't service a loan beyond placement?