Quiz 16 Part 1

Beyond the down payment when purchasing commercial property, what else must David account for?

When does a bank classify a residential building as a commercial property?

If a property's capitalization rate is 5.5% and a buyer pays entirely in cash, what is the cash-on-cash return for the buyer?

An owner with sufficient cash to cover a commercial investment property's operations until cash flow stabilizes is considered what?

What term describes the percentage return on money invested in a property?

What class of office building would a Fortune 500 company most likely seek for its corporate headquarters?

What type of lease is commonly used in office buildings?

How can Phillip buy a larger multi-family building while minimizing his cash outlay?

Which type of property is most often purchased based on emotional factors?

Which type of property typically provides the weakest return on an investor's capital?

A retail property consisting of 8,000 - 30,000 sq.ft. is typically classified as what?

When does an owner experience positive leverage in a real estate deal?

What is a fundamental requirement for a commercial real estate owner investing in property?

How many stories does a high-rise office building typically have?

According to the 'Time value of money' concept, how does the value of $1 today compare to $1 in the future?

How can Lisa buy a larger self storage building while using less of her own cash?

What primarily determines the value of commercial property?

What term defines the area of a property that can be leased or rented to a tenant?

What is the annual payment a debtor makes to repay borrowed money called?

An owner purchases a $2,500,000 property with a $150,000 NOI using all cash. What is the cash-on-cash return?

What is a major aspect of commercial investment properties?

What range in stories does a low-rise office building have?

Ely recently purchased a commercial investment property using a jumbo loan from the bank. What is this an example of?

What class of building is a newly built office building?

How many units does a commercial apartment building typically have?

James purchased a commercial property at a 7.5% cap rate. The previous owner agreed to finance the deal at 8%. Why might James elect not to go ahead with the financing?

If the cap rate on a building is 7% and the interest rate on the mortgage is 5%, what will happen?

When will an owner experience a lower cash-on-cash return on his investment as compared to an all cash deal?

If the cap rate on a property is 12%, and the buyer purchases the property using all cash, what is the cash-on-cash return for the buyer?

When does an owner have negative leverage in a deal?

What is an important aspect of industrial warehouse space?

Abby purchased a commercial property using all cash at a 11% capitalization rate. What is Abby's cash-on-cash return on the deal?

If the cap rate on a building is 4% and the interest rate on the mortgage is 5.5%, what will the owner experience?

Justin decided to purchase a property using all-cash. What can Justin do to increase his return on investment?

William buys a building in which the Interest Rate on his mortgage is greater than the Cap Rate of the building. What will William experience with the deal?

David bought a building at a 7% cap rate. What will the interest rate on his mortgage have to be in order to experience positive leverage?

Which of the following is NOT a primary characteristic of real property investments?

The due diligence process on a commercial investment property begins with what?

Ely is a real estate syndicator who pools together a group of investors to buy commercial investment properties. Ely's use of other people's money is an example of what?

What is amount of cash flow a property produces used to determine of a property?

Real estate is what type of investment?

What should an investor look for when reviewing the financials of a commercial property?

What range in stories does a mid-rise office building consist?

Which of the following is an example of using leverage in a real estate transaction...?

The value of commercial real estate is based, in part, on what...?

Which will yield negative leverage in a deal?

What is used to calculate an investor's cash-on-cash return if the property is purchased using all cash?