Podcast
Questions and Answers
What should investors consider when comparing the investment returns on a real estate investment with returns on other investments?
What should investors consider when comparing the investment returns on a real estate investment with returns on other investments?
- The risk and return on alternative investments (correct)
- The economic conditions affecting the property
- The nature of alternative real estate investments
- The business risk involved in renting space
What factor affects some real estate properties more than others in terms of variability of income produced?
What factor affects some real estate properties more than others in terms of variability of income produced?
- The type of property and its location (correct)
- The amount of debt and its cost
- The lease provisions
- The diverse tenant mix
What increases the financial risk for real estate investors?
What increases the financial risk for real estate investors?
- The diverse tenant mix
- The amount of debt and its structure (correct)
- The nature of alternative real estate investments
- The fluctuations in economic activity
What are real estate investors in the business of dealing with?
What are real estate investors in the business of dealing with?
What should an investor decide about an income-producing property?
What should an investor decide about an income-producing property?
What type of risk involves the potential for financial loss due to the inability of borrowers or tenants to meet their financial obligations?
What type of risk involves the potential for financial loss due to the inability of borrowers or tenants to meet their financial obligations?
Which type of risk is related to the impact of economic and market conditions on real estate values?
Which type of risk is related to the impact of economic and market conditions on real estate values?
What type of risk involves the potential difficulty in quickly converting real estate assets into cash without significant loss of value?
What type of risk involves the potential difficulty in quickly converting real estate assets into cash without significant loss of value?
Which risk is associated with the replacement cost of real estate tending to increase with inflation?
Which risk is associated with the replacement cost of real estate tending to increase with inflation?
What type of risk involves potentially taking on liability for cleanup costs that far exceed the value of the property?
What type of risk involves potentially taking on liability for cleanup costs that far exceed the value of the property?
