LOS d, (Part 1): Describe the forms of real estate investment.
Q1. Investors can diversify their direct real estate holdings through all of the following vehicles EXCEPT:
A) co-operative shares.
B) commingled funds.
C) limited partnerships.
Q2. Mortgages are considered to be a form of real estate investment because:
A) if the borrower defaults on the loan, the lender may end up owning the property.
B) the investor receives a constant stream of cash flows.
C) the borrower will own the property at the end of the loan term.
Q3. Which of the following is least likely to be a form of real estate investment?
A) Property insurance.
B) Aggregation vehicles.
C) Leveraged equity position.
Q4. Demand for real estate is a function of all of the following factors EXCEPT?
A) Competitive properties.
B) Population characteristics of the community.
C) The terms and conditions of mortgage financing. |