Which of the following statement about the real estate development is FALSE ? Real estate development...

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 statement about the risk management in the construction of a real estate development project is TRUE?

For a real estate development project with a concentration of high risk components, the developer should choose a contractor with the lowest bid price.
For a real estate development project with a concentration of high risk components, the developer should choose a contractor using lump-sum contract.
For a real estate development project with a concentration of low risk components, the developer should choose a contractor with the lowest bid price.
For a real estate development project with a concentration of low risk components, the developer should choose a contractor using time-material contract.

If a real estate developer overrun the construction budget in the construction of a real estate project, in other words, the actual cost of construction exceeds the estimated cost of construction. Which of the following solution is not feasible?

The real estate developer can resort a loan from a gap lender.
The real estate developer can search for an equity partner.
The real estate developer can invest more equity.
The bank issuing the construction loan has the obligation to provide the gap loan.

Solutions

Expert Solution

Which of the following statement about the real estate development is FALSE ?

Ans: D. The most risky stage in the real estate development process is the land acquisition stage.

Which of the following statement about the risk management in the construction of a real estate development project is TRUE?

Ans: D.For a real estate development project with a concentration of low risk components, the developer should choose a contractor using time-material contract.

If a real estate developer overrun the construction budget in the construction of a real estate project, in other words, the actual cost of construction exceeds the estimated cost of construction. Which of the following solution is not feasible?

Ans: D.The bank issuing the construction loan has the obligation to provide the gap loan.

ekkarill92 answered 2 years ago

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