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If operating expenses are $250,000, potential gross income is $650,000,




1. If operating expenses are $250,000, potential gross income is $650,000, and the maximum acceptable default ratio is.85, the largest mortgage loan the property will support when the annual debt service constant of.105 is;1) less than $2.9 million.;2) between $2.9 million and $3.1 million.;3) more than $3.1 million.;4) not determinable with available information.;2. Assume a tax deductible loss of $33,634, and a pre-tax cash flow of ($8,634). If the investor is in the 28% tax bracket, what would the after-tax cash flow of this investment be?;1) (18,052);2) 784;3) (42,268);4) 25,000;3. Investor-owned office buildings;1) tend to be more luxurious and aesthetically pleasing than owner-occupied office buildings.;2) are usually designed to project the desired image of the tenants.;3) are typically leased on a year-to-year basis.;4) are often leased with provisions for tenants to pay operating expenses above some specified amount per square foot.;4. When a developer or investor acquires a piece of land and then attempts to determine the highest and best use for her property, this is an example of;1) an idea in search of a site.;2) a site in search of an idea.;3) a feasibility study.;4) none of the above.;5. Real estate developers;1) function primarily as brokers, intermediaries between buyers and sellers.;2) work almost exclusively with their own equity funds, and use borrowed money only if they intend to hold developed properties in their own portfolios.;3) seldom include buildings among the improvements they add to land.;4) are often able to satisfy an as yet unmet demand and thereby reap the economic benefits of short-term monopoly.;6. Feasibility studies address the question of;1) what will work.;2) what should be done.;3) which alternative course of action will achieve the best results in terms of the investor's objectives.;4) philosophical limitations.;7. A proposal is said to be feasible when;1) there is a high level of certainty that goals will be attained.;2) there is a reasonable likelihood of satisfying explicit objectives.;3) a selected course of action is tested for fit to a context of specific constraints and limited resources.;4) the amount and timing of required cash expenditures and expected cash inflows are assessed in the context of the degree of confidence that attaches to the estimates.;8. Subdivision, a term applied to the land development process, may involve all of the following except;1) improving land by adding roads, storm sewers and sidewalks.;2) surveying the land and dividing it into individual building lots.;3) constructing buildings and other improvements on the land.;4) selling individual building lots that have been created.


Paper#21001 | Written in 18-Jul-2015

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