Ree3043 test questions - Study guides, Class notes & Summaries

REE3043 TEST QUESTIONS WITH CERTIFIED ANSWERS – UPDATED!! The value of income producing property depends on its - Answer-Expected cash flows, the timing of those cash flows, and the riskiness of those cash flows Real estate investors earn returns on their investments from - Answer-Rental income and property appreciatiob Investment risk - Answer-The probability that actual cash flows will differ from what was expected Most real estate investors are - Answer-Risk averse The outstan...

REE3043 REVIEW TEST QUESTIONS WITH ALL CORRECT SOLUTIONS Two important advantages of automated underwriting are that it is __________ and it enables lenders to more safely make ________ loans. - Answer-Two important advantages of automated underwriting are that it is faster and it enables lenders to more safely make affordable housing loans. What two contracts are always involved in a mortgage loan? - Answer-A borrower always conveys a mortgage and a note to the lender in the mortgage loan. ...

REE3043 PRACTICE TEST QUESTIONS WITH REVISED ANSWERS – UPDATED!! Property manager top designation ____________ - Answer-certified property manager CPM Administrative tasks- collecting rents, prepare monthly reports (who paid who didn't, what isn't) and record keeping - Answer-property manager tasks need to know the marketing advantages/disadvantage of property have low cost and low maintenance amenities that competitors dont have - Answer-marketing strategy ______________ want s...

REE3043 TEST QUESTIONS WITH CERTIFIED ANSWERS – UPDATED Answer-False - these periods come from long length of construction period and mortgage lenders' lending policies T or F: Rents reflect the price of space and sale prices reflect the value of assets and the right to collect rents - Answer-True T or F: 3 key trends that will affect commercial real estate markets are population growth, technology trends, and the changes anticipated in the ethnic composition of the population - Answe...

REE3043 REVIEW TEST QUESTIONS WITH ALL CORRECT SOLUTIONS As part of their underwriting process, lenders may rely on debt ratios to ascertain whether borrowers have the ability to make regular payments on their mortgages. Utilizing the following information, calculate the total (back-end) debt ratio we learned in class. Monthly principal and interest on mortgage loan: $1500; Monthly tax and insurance payments into escrow: $200; Estimated monthly utility bills: $350; Monthly car loan payment (2 y...

REE3043 PRACTICE TEST QUESTIONS WITH REVISED ANSWERS – UPDATED!! There will be a fixed payment ( can be a year or monthly ). Then the rate is adjusted - Margin never changes - Index changes as per the terms of the loan - Answer-ARM - adjustable rate mortgage Example : - principle : $400 - interest : $600 - total payment : $1,000 - optional arm allows you to decide how much of your payment you want to send in - whatever you send it goes to pay down the interest first. Anything left ...