1 True/False, Why? For each statement, indicate whether the statement is true or false and briefly explain why. If the

statement is false, simply stating the statement's negation is not enough. One or two sentences will be

enough. Do not write more than three sentences.

1. If you make an investment in a property by taking a 70% LTV loan, you are guaranteed to have a higher return to equity compared to if you had financed the purchase with 100% equity.

2. Interest-Only mortgages are the most preferred type of mortgage for commercial real estate investors. Due to the fixed nature of the payments, it is easy to budget in debt service payments and reduces refinancing stress.

3. The total return generated by a particular property is 9% per year, and it is possible to secure debt on this property at an interest rate of 8.5% per year. In this case, increasing leverage will increase the expected return to equity.