Question: please answer whatever you know! 1. Which lease type is preferred if you are a landlord thinking inflation expenses will be high in the next
please answer whatever you know!
1. Which lease type is preferred if you are a landlord thinking inflation expenses will be high in the next coming years?
a. flat lease
b. gross lease
c. modified full service lease
d. triple net NNN
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2. In excel, what function would best help determine the effective yield of a loan with points?
a.NPER
b. PV
c. FV
d. EFFECT
e. DISCRATE
f. RATE
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3. What statement below is the most accurate about positive and negative leverage?
a. Positive leverage increases the return on equity via the use of debt
b. Positive leverage reduces the return on equity via the use of debt
c. negative leverage reduces the risk of default with greater amounts of debt
d. Positive leverage reduces the risk of default with greater amounts of debt
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4. Select a common reason leverage is NOT used in real estate investments?
a. debt it often available at higher rates than the propertys rate of return
b. utilization of debt often results in positive leverage on equity
c. utilization of debt increases the investors purchasing power relative to the level of equity
d. debt can be underwritten and securitizes to manage and transfer risks amongst investors
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5. Select the following determinant of cap rates that gets influenced by capital and space market factors
a. Discount rate
b. growth
c. OCC
d. Risk
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6. If using the 4 quadrant diagram, what would happen to real etstae if the market is stable and at equilibrium and all of a sudden stock and bond returns fall and cap rates on properties fall by 20% and no new tenant are looking for spaces?
a. real estate prices go up, development increases, and new supply rises
b. real estate prices go down, development increases, and new supply rises
c. real estate prices go up, development decreases, and new supply falls
d. real estate prices go down, development decreases, and new supply remains fixes
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