real estate finance - full book (500 pgs) - Dynasty...

Dynasty School (www.dynastySchool.com) i
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REAL ESTATE FINANCE
Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate,
Notary, Nurse, Food Handlers, Tax and Securities
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This publication is designed to provide accurate and authoritative information in regard
to the subject matter covered. Although a great deal of care has been taken to provide
accurate and current information, the ideas, suggestions, general principles and
conclusions presented in this text are subject to local, state and federal laws as
regulations, court cases and any revisions of same. The reader is urged to consult legal
counsel regarding any points of law. This publication should not be used as a substitute
for competent legal advice.
Real Estate agents are urged to refer to two indispensable reference sources: “Real
Estate law” and “Real Estate Reference Book” published by California Department of
Real Estate. Please visit DRE’s web-site, ) www.dre.ca.gov . Or you may order via
our school.
All CAR forms “ Reprinted with Permission, California Association of Realtors  .
Endorsement not implied. ”
 Copyright 2002 by Dynasty School.
All rights reserved. No part of this material may be reprinted, reproduced, transmitted,
stored in a retrieval system, or mechanical, including photocopying or recording, now
existing or hereinafter invented, nor may any part of this course be used for teaching
real estate without the prior written permission of Dynasty School.
1st Edition August, 2002.
Printed in the United States of America.

Dynasty School (www.dynastySchool.com) iii
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REFACE
A career in real estate finance can be exciting and profitable if a person is self–
motivated and with the skills and tools needed. This book is intended for those who
seek to gain knowledge as a real estate licensee, for individuals to enter the real estate
finance business and also for persons already actively working in the industry.
Real estate is expensive, and few people ever accumulate enough savings to pay for it
with all cash. Most real estate transactions hinge, therefore, on the buyer's ability to
obtain financing. Even people who have sufficient funds rarely pay cash for real estate
because (as noted in a later chapter) income tax deductions and investment yields favor
purchasing real estate with borrowed funds, called “ leverage ” . Thus, whether by
necessity or by choice, financing is essential for most real estate transactions.
Real Estate Finance is an introduction to the many interesting aspects of the real
estate business. This book has been written primarily for the prospective real estate
broker or sales–person, but it will also be of interest to the people who wants to become
a real estate professional.
H
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HIS
B
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Read the text of each chapter. At the end of each chapter there are chapter quiz that
will require you to use what you have learned to solve problems involving practical
applications of the topics covered. After you complete a test, you can check the answer
key provided.