True or False One of the positive features of commercial real
estate as an investment class...
True or False One of the positive features of commercial real
estate as an investment class is its liquidity.
Solutions
Expert Solution
FALSE
The commercial real estates are illiquid and
hence they cannot be easily bought and sold at fair market places.
So, commercial real estate as an investment class is not a
positive. Its illiquidity is a drawback to investment.
Is the following statement true or false and HOW? "If a Seller
of Real Estate retains a life estate in the sold property it means
that he sold his real estate to a third party but retained the
right to own the property until his death."
Scheerer, a licensed real estate agent, and Fisher, a manager of
commercial real estate, worked together on past real estate deals
and knew each other from their business relationship. Scheerer gave
Fisher a tip that some commercial real estate was on the market
that Fisher might be interested in purchasing. Fisher made an offer
to buy the properties and, with this offer, orally contracted for a
2 percent commission for Scheerer from the seller and another 2
percent commission from...
Garcia Real Estate is involved in commercial real estate
ventures throughout the United States. Some of these ventures are
much riskier than other ventures because of market conditions in
different regions of the country.
1) If Garcia does not risk-adjust its discount rate for specific
ventures properly, which of the following is likely to occur over
time? Check all that apply.
A. The firm will increase in value.
B. The firm’s overall risk level will increase.
C. The firm could...
True or false?
- The investment demand function shows the relationship between
investment spending and real interest rate
- The IS curve consists of every equilibrium spending at each
real interest rate
- The IS curve represents the combination of GDP and interest
rate for which injections and leakages are equal.
- If an economy is currently at a point to the left of the IS
curve, this means that the aggregate spending is more than the
actual output. Therefore,...
Which of the following statement about the real estate
development is FALSE ?
Real estate development includes five stages: land acquisition,
construction, completion and occupancy, management and sales.
The real estate development project subjects to the financial
risk, scheduling risk and design risk in the construction
stage.
The most risky stage in the real estate development process is
the sales stage.
The most risky stage in the real estate development process is
the land acquisition stage.
Which of the following...
Which of the following is true about real estate pricing?
Real estate prices are always the same as the value of the real
estate.
Real estate prices are a function of the value of the real
estate.
Real estate prices are clearly observable in the market.
Real estate prices can be influenced by the number of buyers
and sellers active in the market.
What type of easement is usually used for commercial
purposes?
Appurtenant easement
Negative easement
Gross Easement.
Dominant...
1)
Real estate investment trusts may invest in
I. commercial properties such as shopping malls.
II. residential rental properties.
III. mortgages.
IV. combinations of property and real estate related debt.
A.
I, II, and III only
B.
I, II, III and IV
C.
II and IV only
D.
I and III only
2) Prices of residential properties tend to weaken when
I. unemployment increases.
II. interest rates fall.
III. interest rates rise.
IV. economic levels are high.
A.
I, II,...