Which of the following is NOT a method commonly used to determine the residual value of a property?
1. Which of the following is NOT a method commonly used to determine the residual value of a property?
a) Estimate the residual value from expected changes in property value due to projected income
b) Estimate the residual value from sales data of older “comparable” properties
c) Discount all remaining
d) Hire an appraiser to perform a forward-looking appraisal of the property
2. Which of the following is generally NOT found in a commercial lease?
a) Limits on social events held in the space
b) Restrictions on assignment or subletting
c) Responsibility for maintenance and repair
d) Alteration restrictions
3. The possibility that a property might be rezoned would be considered a:
a) Business risk
b) Financial risk
c) Environmental risk
d) Legislative risk
4. Which of the following statements is NOT true of real estate syndications?
a) They offer tax benefits that other structures don’t
b) They are not a formal (i.e. legal) organizational form
c) They can be structured as corporations, limited partnership, or other organizational forms
d) They are needed primarily when the amount of capital required is too big for one group of investors
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