Professional Documents
Culture Documents
Michelle M. Esperal
MIDTERM EXAMINATION
Marks 30.00/30.00
Question 1
Buyers and sellers can sometimes strike up a mutually beneficial agreement, allowing the investor and
seller to avoid having to go through a private lender altogether
Seller Financing
Question 2
The sales agreement details the payments and credits that are due to the seller and the payments and
PESO amounts due from the buyer, details include transaction costs such as title and tax searches, and
adjustments, if applicable, such as prepaid taxes.
True
Question 3
It is a transaction between two or more parties, typically a buyer and a seller, in which goods or
services are exchanged for money or other assets
sale
Question 4
A copy of the property tax bill is typically provided to the buyer by the seller after closing the
transactions.
True
Question 5
False
Question 6
In seller financing, the buyer of the property will make payments directly to the seller of the property,
rather than going through a bank
True
Question 7
Diversifies portfolio
Question 8
When an individual is purchasing their first home, a sale occurs when the home is sold to the buyer.
True
Question 9
A debt instrument, secured by the collateral of specified real estate property, that the borrower is
obliged to pay back with a predetermined set of payments.
MORTGAGE
Question 10
Once you and the buyer have agreed upon price, you are ready for a formal inspection of your home
to detect defects or problems.
True
Question 11
Private money lenders provide short-term, high-rate loans for real estate investors.
False
Question 12
Investors who are well-connected can often tap into capital from personal connections, borrowing
money at a specified interest rate and payback period
Question 13
Individuals who have elected to create savings through a self-directed IRA may make the decision to
tap into their account as a way to access capital.
Question 14
A fixed-rate mortgage, the borrower pays the same interest rate for the life of the loan but the
monthly principal and interest payment never changes from the first mortgage payment to the last
True
Question 15
Listing your home with an Agency Real Estate professional agent is the second step on the path to a
successful closing.
False
Question 16
This is a great option for investors trying to raise the last portion of funding for a project. Peer-to-peer
lending can offer high flexibility and low interest rates.
Peer-To-Peer Lending
Question 17
Leveraging a purchase means that you use the banks money to earn a return on your investment.
True
Question 18
A home that has features that are sought after in your area will dictate a higher price.
Amenities
Question 19
Establishing the list price that will attract the most buyers at the best price is the first step in
developing a marketing plan.
True
Question 20
An investment manager could earn his living trading bundles of mortgages, called mortgage-backed
securities, and other kinds of debt financing.
True
Question 21
Accessible to investors who have less-than-perfect credit or financial history, and are in need of a
short-term loan.
Hard Money Lenders
Question 22
Great for investors who have access to a significant amount of capital, either personally or through
their network, and wish to purchase properties free and clear.
Cash Financing
Question 23
Buy & Sell (Long-term) means to work toward long-term goals such as retirement, college tuition, or
other significant expenses
True
Question 24
Which of the following is not the characteristic of a real estate as an investable asset?
It is an intangible asset
Question 25
What do you call a person who rents land or property from a lessor?
Lessee
Question 26
Cash financing enables investors to save on interest, increase their cash flow, and receive instant
equity in their investment. It also has the ability to save investors on the purchase amount.
True
Question 27
A Home Protection Plan that protects a buyer during the first year of home ownership may add
stability to your home.
Home Warranty
Question 28
The property value goes up every year, hopefully, appreciation can result from inflation or increases in
demand for property or improvement to the property
True
Question 29
Peer-to-peer lending allows investors to borrow money from other investors, or groups of investors
(hence the name).
True
Question 30
Completion of the project should be properly monitored not allowing any deviation from the expected
needs and wants but having necessary alteration according to altered needs and wants if any in order
to maximize the users’ satisfaction.
True