Real Estate Investment and Financing Basics

<p>Waterfall</p> Signup and view all the answers

<p>Rating Agency CBRS Standard &amp; Poors</p> Signup and view all the answers

<p>Cash flows derived from the underlying mortgages based on its level of seniority</p> Signup and view all the answers

<p>90%</p> Signup and view all the answers

<p>75%</p> Signup and view all the answers

<p>90%</p> Signup and view all the answers

<p>Non-taxable institutional investors</p> Signup and view all the answers

<p>0.6% to 4.50%</p> Signup and view all the answers

<p>Pension funds</p> Signup and view all the answers

<p>Capital for predevelopment, land acquisition, construction, stabilization, and take-out</p> Signup and view all the answers

<p>Constraints by local governments including zoning and infrastructure requirements</p> Signup and view all the answers

<p>Fixed price, guaranteed maximum price, and cost plus options</p> Signup and view all the answers

<p>Lease-up and operating costs to bring a property to a stabilized level</p> Signup and view all the answers

<p>Arranged once the property reaches stabilized NOI in the form of a mortgage loan</p> Signup and view all the answers

<p>Preparing the site, creating infrastructure, and managing unanticipated risks</p> Signup and view all the answers

<p>REOCs pay regular corporate taxes, while REITs have specific asset and income requirements and public trading.</p> Signup and view all the answers

<p>$NPV = \sum\frac{CF_t}{(1 + r)^t} - Initial Investment$</p> Signup and view all the answers

<p>Annual growth rate and is compared to the hurdle rate.</p> Signup and view all the answers

<p>Professional services, environmental studies, land acquisition, permits, and zoning.</p> Signup and view all the answers

<p>$Right of First Offer$, $Right of First Refusal$, $Shotgun Clause$, and $Sale by Appraisal$.</p> Signup and view all the answers

<p>Preferred returns, promote, and claw back for investors and partners.</p> Signup and view all the answers

<p>Net Present Value (NPV) and Internal Rate Of Return (IRR)</p> Signup and view all the answers

<p>They have unlimited upside and the possibility to limit downside risk through equity</p> Signup and view all the answers

<p>Owners have unlimited liability which extends to their other assets</p> Signup and view all the answers

<p>They are only at risk for their investments and their income from the property is taxed in their hands</p> Signup and view all the answers

<p>The income of the property is taxed in the hands of the partners</p> Signup and view all the answers

<p>They take into account the time value of money and provide a clear measure of profitability</p> Signup and view all the answers

<p>CMBS</p> Signup and view all the answers

<p>RMBS</p> Signup and view all the answers

<p>Waterfall</p> Signup and view all the answers

<p>To participate in the cash flows based on seniority</p> Signup and view all the answers

<p>Standard &amp; Poor's</p> Signup and view all the answers

<p>CMHC insured mortgages on residential properties</p> Signup and view all the answers

<p>Unlimited liability which extends to the owners’ other assets</p> Signup and view all the answers

<p>Taxed in the hands of the partners</p> Signup and view all the answers

<p>Rights to use and develop a property as allowed by government regulations</p> Signup and view all the answers

<p>Commercial mortgages</p> Signup and view all the answers

<p>To replace interim financing with long-term financing</p> Signup and view all the answers

<p>Sequential distribution of cash flows from underlying mortgage pool</p> Signup and view all the answers

<p>Site selection, predevelopment, entitlements, and construction</p> Signup and view all the answers

<p>Environmental, soil, and cultural issues</p> Signup and view all the answers

<p>To provide temporary financing until the property reaches its stabilized NOI</p> Signup and view all the answers

<p>A significant portion of their income</p> Signup and view all the answers

<p>Residential, commercial, and industrial properties</p> Signup and view all the answers

<p>To fund the total expected cost and anticipated value at stabilization.</p> Signup and view all the answers

<p>REOCs are corporations primarily investing or operating in real estate, paying regular corporate taxes, while REITs are legal entities whose primary business is real estate investment, with specific requirements for assets and income.</p> Signup and view all the answers

<p>Preferred returns, promote, and claw back are methods of allocating profits in real estate investment partnerships.</p> Signup and view all the answers

<p>To replace a short-term construction loan with long-term mortgage financing after construction is complete.</p> Signup and view all the answers

<p>Site work includes activities such as grading, excavation, utility installation, and road construction on a development site.</p> Signup and view all the answers

<p>$f(x) = -4(x + 3)^2 + 2$ Professional services, environmental studies, land acquisition, permits, and zoning are included in project management costs for real estate development.</p> Signup and view all the answers

<p>90%</p> Signup and view all the answers

<p>75%</p> Signup and view all the answers

<p>3.1% to 4.5%</p> Signup and view all the answers

<p>Equity and Debt REITs</p> Signup and view all the answers

<p>$Entity_1$, $Entity_2$, $Entity_3$</p> Signup and view all the answers

<p>$Factor_4$, $Factor_5$, $Factor_6$</p> Signup and view all the answers