Finance 4520 Exam 2
Test Questions from Class
What technology is being introduced in the Real Estate Market?
o Virtual Reality
What risk is underpriced?
What bad analogy was used?
o Expresso vs. Mint Tea
Chapter 1: Real Estate Investment-Basic Legal Concepts
What are the different factors that affect real estate according to our market
B. Interest Rates
C. Regulatory Policies * not discussed
Chapters 14, 15, 10, 11, 12, 13, 20
Chapter 14 Evictions and Other Disputes with Landlords
1. Define the term eviction.
The action of expelling someone, especially a tenant, from a property.
2. What are some possible ways to get out of your lea
Chapter 7 - Book Example
Rent versus Own Analysis of a Personal Residenc
*Blue Items are "Inputs" - Or non-calculated assumptions
Rental growth rate
Property growth rate
% to building
% to land
NOI (Year 1)
Annual Debt Service
What is Yea
Example From Slides
Discount Rate (given)
Step 1: Calculate PV (NPV)
Step 2: Calculate Payment
$33.75 =NPV(discount rate,cash flows)
note: There is no year 0, so year zero=0
$13.57 =PMT(discount rate,COUNT(
Fixed Interest Rate
Mortgage Interest Rates
Demand for mortgages is essentially derived demand; without a demand for
real estate, the demand for mortgages would not exist.
1.What will borrowers pay for the use of funds?
Real Estate Investment:
Basic Legal Concepts
An interest is a right or claim on real property, its
revenues, or production.
A common example of an interest is when an owner of real
estate pledges or encumbers his property as a conditi
Real Estate Financing:
Notes and Mortgages
Evidence of Debt
Rate of interest
Dollar amount, due dates, # of payments
Reference to security for the loan
Letter of Intent
This letter is not intended to be a binding contract, a lease or an offer to lease but is intended only to provide the basis for
negotiating a lease document between Landlord and Tenant. These terms are as follows:
Interest-claim on property
Grantor Seller, Grantee Buyer
General Warranty Deed-most common provides max warranty
Special warranty deed-good title and defends against claims
Bargain and Sale deed- as is deed property with