#1
What is a cap rate in real estate finance?
The interest rate on a mortgage
The rate of return on a property based on its income
The rate at which property values appreciate
The rate at which property taxes are calculated
#2
What does ROI stand for in real estate investment?
Rate of Inflation
Return on Investment
Real estate Ownership Income
Revenue of Interest
#3
What is 'depreciation' in real estate investment?
An increase in property value over time
A reduction in property value over time
A method for property assessment
An insurance coverage for property damage
#4
What is a '1031 exchange' in real estate?
An investment strategy involving currency trading
A tax-deferred exchange of like-kind properties
An agreement for property management
A government housing assistance program
#5
What is a 'REIT' in real estate investment?
Real Estate Investment Tax
Real Estate Investment Trust
Real Estate Inspection Team
Real Estate Investment Technique
#6
What is 'cash flow' in real estate finance?
The movement of physical cash between buyers and sellers
The net income generated by a property
The purchase price of a property
The amount of money borrowed for a mortgage
#7
What is a 'rehabilitation' in real estate investment terminology?
A type of mortgage loan
Renovation or improvement of a property
A legal process in property acquisition
A financial analysis method
#8
What is 'leverage' in real estate finance?
The amount of debt on a property
The flexibility in repayment terms
The influence of interest rates on property value
The use of borrowed funds to increase potential return
#9
What does 'IRR' stand for in real estate finance?
Interest Rate Reduction
Internal Rate of Return
Investment Realization Ratio
Income Revenue Ratio
#10
What is 'equity' in real estate?
The value of a property after deducting liabilities
The amount of money a property generates
The number of shares in a real estate company
The market value of a property
#11
What is 'due diligence' in real estate investment?
An interest rate calculation
A legal process of property transfer
A thorough investigation of a property before purchase
A method for property valuation
#12
What is 'amortization' in real estate finance?
The process of increasing property value
The reduction of a loan over time through regular payments
The calculation of property taxes
The division of property among multiple owners
#13
What is a 'triple net lease' in commercial real estate?
A lease agreement for three properties
A lease where the tenant pays rent plus property expenses
A lease that includes three tenants
A lease agreement for a minimum of three years
#14
What is 'liquidity' in real estate investment?
The ease of converting property into cash
The risk associated with investment
The amount of leverage used in financing
The property's potential for appreciation
#15
What is 'gross rental income' in real estate?
The total income generated by a property before expenses
The net income after deducting operating expenses
The income generated from property appreciation
The income generated from property sales
#16
What is 'passive income' in real estate?
Income earned from actively managing properties
Income earned from investing in stocks
Income earned without active involvement
Income earned from salary or wages
#17
What is 'valuation' in real estate?
The assessment of a property's worth
The legal process of property transfer
The negotiation of property prices
The insurance coverage for property damage