Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
C12 Investing
CA Real Estate Practice- Investing and Other Broker-Related Fields
| Question | Answer |
|---|---|
| Appreciation | selling property for more than its worth |
| Interim Use | a property temporarily generates rent for other than its future zone use |
| Fully Depreciated | property has been charged maximum amount of depreciation allowed by IRS |
| Book Value | value of property is low according to balance sheet account balance |
| Scheduled Income | gross income that a property would generate if there were no vacancies |
| Potential Gross Income | total income a property is capable of at full capacity without deductions for expenses |
| Vacancy Factor | allowance for vacancies and uncollected rent |
| Effective Gross Income | scheduled gross income adjusted for vacancies |
| Operating expenses | include fixed and variable expenses |
| MITUM | maintenance, insurance, taxes, utilities, management = largest expenditures of an income property |
| Net Operating Income (NOI) | income used in direct capitalization Operating expenses subtracted from effective gross income |
| Times Gross | proposed selling price divided by scheduled gross income with multiplier used as ballpark figure to weigh prospective value of investment |
| Capitalization Rate (Cap Rate) | net operating income divided by selling price |
| Syndication | 2 or more people who combine their financial resources for purpose of achieving one or more investment objectives |
| Limited Partnership | (most preferred) two or more people joined together in mutual investment to share profits and losses |
| General Partnership | (not recommended) association of two or more doing business as co-owners for profit |
| Corporation | artificial being, intangible, invisible, and only existing in contemplation of law |
| Subchapter S Corporation | small business corporation taxed like partnership (taxed twice) |
| Real Estate Investment Trust (REIT) | sells ownership shares |
| Real Estate Mortgage Trust (REMT) | when main function of trust is lending money |
| Real Estate Equity Trust (REET) | trust that actually purchases property |
| Hybrid Trust | used for investments in both mortgages and real property |
| Goodwill | value of a company's brand name, customer base, customer relation, employee relations, and patents/proprietary technology |
| Uniform Commercial Code (UCC) | body of law that standardizes a number of practices in the selling of inventory |
| Bulk Transfer | sale of more than 1/2 a sellers merchandise, inventory, equipment |
| How many days before the transfer is consummated must a Notice to Creditors be recorded? | 12 business days |
| Encumbrancer | those who have a lenders interest by having placed a lien, acquired easement, imposed restrictions against it, or acquired any other interest which would encumber the property |
| Certificate of Payment of Sales & Use Tax | releases buyer from liability for sellers unpaid sale/use taxes |
| Bill Of Sale | serves same function in transfer of personal property as the grant deed does for real property |
| Net Multipliers | amount a business would sell for based on the annual net income x standard number or multiplier |
| In what kind of real estate are gross multipliers used? | income producing real estate |
| Covenant Not To Compete | seller agrees to not open a competing business for a time within specified area |
| Real Property Securities Dealer (RPSD) | person in secondary market in business of 1) selling real property securities and 2) offering to accept funds for continual reinvestment |
| CalBRE requires which license in order to receive endorsement as a real property securities dealer? | Real Estate Broker License |
| Acknowledgement | formal declaration before a duly authorized officer by person executing an instrument that such execution is his/her act and deed |
| Interstate Land Sales Full Disclosure Act | offer for sale or lease of 25 lots or more through interstate commerce or mail requires permit from Department of HUD |
| What are the dimension requirements to be considered a mobile home? | at least 8 feet wide and 40 feet long |
| Under what circumstance may a broker sell a manufactured home? | if it has been registered with the DMV for at least one year |
Created by:
lbrito0610