1. The potential risks in a real estate investment include:

(A) Liquidity risk, capital markets risk, legislative risk

(B) Business risk, financial risk, management risk

(C) Interest rate risk, environment risk, market risk

(D) All of the above

2. When would seller financing of real estate not be used?

A. the seller wants to use the installment method of reporting the gain from sale

b. the buyer does not qualify for a conventional mortgage loan

c. third-party mortgage financing is less expensive and easily available

d. the seller desires to artificially raise the price of the property by offering a lower than marker interest rate on the seller financing

3. a loan in which the borrow arranges for a maximum loan amount that will be advanced in stages, like a construction loan, is said to be

A. assumable b. non-recourse c. open-ended d.subordinated