----------review questions-------

2-11
5 characteristics common to successful people
desire and drive
determination
committment and dedication
discipline
courage
perserverance
optimism
attitude of abundance
high self esteem
education
experience
organization
three characteristics of ideal investor
leads a balanced life of which he or she is in total control
investor is conscious of his or her responsibilities and duties toward o
ther and does not sacrifice spiritiual life for material pleasures.
well educated about real estate investing
understands the principles tought in this course and also reads other bo
oks and courses on real estate
knowledgeable of real estate vocab and knows the local marketplace
sets well thought out goals and commits to them on paper and in his mind
.
possess genuine self confidence from knowledge and wisdom
why is real estate superior to other investments such as savings and stock marke
ts
the return on savings accounts and other secured investments is too low.
the trend in real estate value has always been upward
four main financial benefits to real estate investing
income, growth tax, advantages, leverage
three miscellaneous benefits to r.e.i.?
commissions and fees, instant equity, and principal amortization
two main personal benefits of r.e.i?
control over the investment and pride of ownership
3-8
why is it important to set goals?
it is the first step to acheiving your dreams and goals give you a targe
t to aim at.
what is the difference between short term and long term goals?
short term should be accomplish w/in a year tops and long term between 1
-5 years
what are two important principles that apply to setting goals?
write down your goals and review them daily
what are the four characteristics of good goals?
realistic, measurable, harmonious, flexible
why should you study your goals in order to make plans to acheive them?
the only way to make your dreams a reality is to take direct action
what is the purpose of establishing priorities in the personal time management s
ystem?
it ensures that you will get the most important things done first.
4-8
what is creativity?
artistic or intellectual inventiveness--finding new ways to solve old pr
oblems
what are some factors that stifle creativity?
society stifles creativity
what are two exercises you can do to help yourself become more creative?
creating a positive state of mind by telling yourself "i am a creative p
erson and i can solve any problem"
practicing ingenuity by believing that every problem has multiple soluti
ons
what is one of the most common misconsceptions that a beginning investor can hav
e?
that there is a standard way of paying money owed
5-16
how can credit help you as a rei?
good credit increases your financing options and multiplies investment o
pportunities
what are the names of the three major national credit repositories?
equifax, experian, transunion
what kinds of information are contained in credit reports?
personal data, credit history, collection agency information, courthouse
records, ie former addresses and employers
what are two simple ways to establish new credit?
obtaining credit cards or use credit pursuit strategy
what is the difference between a regular credit card and a secured credit card?
charges on a secured card are debited directly from an existing account.
which four factors can positively influence your ability to be approved for a lo
an?
home ownership, savings accounts, job stability, and low debt-to-income
ratio.
what are the two percentage limits that lenders use to determine whether or not
you can afford your total monthly debt load?
housing expenses to income ratio 28% and housing plus other expenses to
income is 36%
what is the minimum term for any loan that shows up on a credit report?
3-6 months
what is the main purpose of overdraft protection?
prevent having checks returned to bank for nsf
6-15
what are the three types of business resources that you should add to your list
of available resources?
management companies, property rental companies, title insurance compani
es
how can you lead an appraiser to appraise a property at a value close to what yo
u think the property is worth?
by giving your own financial analysis
what are five guidelines that you should give to an agent with whom you want to
work?
*any property w/ a flexible or highly motivated seller
*any property that the seller is willing to finance
*properties w/ mortgages where the outstanding bal is less than 50% of t
he asking price
*all properties w/ assumable mortgages
*any property being offered at 80% or less its fair market value
what is one disadvantage to becoming a real estate broker or agent?
the time and cost of attending classes and identifying yourself as a lis
censee
what is a networker in terms of rei?
someone whom you pay a fee to be on the look out for properties that are
for sale
7-19
why is vacant land usually not a good investment?
why are single family homes the best property for new investors?
what are two of the advantages and two dis of investing in an apartment building
?
who should you contact to increase your knowledge of a specific marketplace?
what is a hole in the marketplace and why is it important to you as an investor?
what are three of the ways to find potential properties?
what are three questions you should ask when scouting a neighborhood for potenti
al properties?
what is a flexible seller and what are three situations that would make a seller
flexible?
what are five resources at your disposal for finding flexible sellers?