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6 Cards in this Set

  • Front
  • Back
When developing a CAP rate, one would not consider:

a. Depreciation
d. Property taxes
c. Investment alternatives
d. Risk
b. Property taxes
A construction loan is generally considered a:

a. Take-out loan
b. Stand by commitment
c. Short term- interim
d. Fully amortized loan
c. Short term - interim
Construction loan monies are generally obtained from:

a. Savings and loans
b. Commercial banks
c. Life insurance companies
d. Mortgage brokers
b. Commercial banks
When a cap rate goes up, value goes:

a. Down
b. Up
c. Remains the same
d. Will be lowered dollar to dollar
a. Down
If interest rates rise, what effect would this have on commercial property with a long term fixed rate lease?

a. The CAP rate would decrease
b. Property value would increase
c. Net operating income would decrease
d. Property value would decrease
d. Property value would decrease
The income analysis appraisal method would not include:

a. CAP rate
b. Depreciation
c. Net Income
d. Operating Expenses
b. Depreciation