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C12 Investing

CA Real Estate Practice- Investing and Other Broker-Related Fields

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