Question 1

Which of the following is a requirement of a REIT?

Accepted Answer

A)  distribute at least 90 percent of the taxable annual earnings to shareholders
B)  hire independent real estate professionals to carry out certain management activities
C)  have at least 100 shareholders and no more than one half of the shares being owned by 5 or fewer people
D)  invest at least 70 percent of the total assets in real estate
E)  all of the other answersF) C) and D)
G) A) and B)

Question 2

What role can a REIT play in diversifying an individual's investment portfolio?

Accepted Answer

A REIT is an investment in real estate a...

Question 3

Which type of REIT pools money to finance construction loans?

Accepted Answer

A)  mortgage
B)  compound
C)  hybrid
D)  simple
E)  equityF) C) and D)
G) B) and E)

Question 4

Collectibles include rare coins,works of art,antiques,stamps,rare books,paintings,and other items that appeal to collectors and investors.

Accepted Answer

A) True 
 B)False

Question 5

Indirect real estate investments include investing in real estate syndicates,REITs,and participation certificates.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is a true statement?

Accepted Answer

A)  If interest rates rise demand for second homes will rise.
B)  If someone manages your rental property,expect to pay 5 to 10 percent in management fees.
C)  Rental expenses are not limited for tax purposes.
D)  Rental expenses are treated as a passive loss once they exceed rental income.
E)  All of the other answers are truE.F) None of the above
G) A) and E)

Question 7

Aside from a home,the real property investment most widely favored by the small investor is:

Accepted Answer

A)  a post office building.
B)  land.
C)  a building with 30 or more apartments.
D)  a condominium.
E)  the duplex,four-plex,or small apartment building.F) B) and C)
G) A) and E)

Question 8

Direct real estate investments include single-family dwellings,duplexes,apartments,land,and commercial property.

Accepted Answer

A) True 
 B)False

Question 9

The investment tax credit has been eliminated entirely for all types of real estate except:

Accepted Answer

A)  low-income housing projects.
B)  single-family dwellings.
C)  shopping centers.
D)  raw lanD.
E)  developed land.F) D) and E)
G) A) and C)

Question 10

Collecting for investment purposes is very similar to collecting as a hobby.

Accepted Answer

A) True 
 B)False

Question 11

Your parents own a vacation home and find it more difficult to spend as much time there as they once did.They are thinking about continuing to use it as a vacation retreat but also want to periodically rent it and use it as an investment.Discuss the issues they should consider when making this decision.

Accepted Answer

The after-tax cost of owning a vacation ...

Question 12

Owen Cartwright has joined a real estate syndicate that bought an office building in downtown Orlando,Florida.What type of investment does he hold?

Accepted Answer

A)  direct investment in real estate
B)  indirect investment in real estate
C)  equity REIT
D)  participation certificate
E)  mortgage REITF) A) and B)
G) A) and C)

Question 13

David Harris has invested in something that acts like a mutual fund and that invests in construction loans and property all over the country.This investment trades on the New York Stock Exchange.What type of investment has David made?

Accepted Answer

A)  limited partnership
B)  equity REIT
C)  mortgage REIT
D)  hybrid REIT
E)  participation certificateF) B) and C)
G) A) and D)

Question 14

You gain entry to a shopping center investment by investing as little as $5,000 in a limited partnership.

Accepted Answer

A) True 
 B)False

Exam 17: Investing in Real Estate and Other Investment Alternatives

Indirect real estate investments include investing in real estate syndicates,REITs,and participation certificates.

Correct Answer
verified

Collecting for investment purposes is very similar to collecting as a hobby.

Correct Answer
verified

Which type of REIT pools money to finance construction loans?

Correct Answer
verified

Correct Answer
verified
The after-tax cost of owning a vacation ...
View Answer

You gain entry to a shopping center investment by investing as little as $5,000 in a limited partnership.

Correct Answer
verified

Direct real estate investments include single-family dwellings,duplexes,apartments,land,and commercial property.

Correct Answer
verified

Owen Cartwright has joined a real estate syndicate that bought an office building in downtown Orlando,Florida.What type of investment does he hold?

Correct Answer
verified

What role can a REIT play in diversifying an individual's investment portfolio?

Correct Answer
verified
A REIT is an investment in real estate a...
View Answer

The investment tax credit has been eliminated entirely for all types of real estate except:

Correct Answer
verified

David Harris has invested in something that acts like a mutual fund and that invests in construction loans and property all over the country.This investment trades on the New York Stock Exchange.What type of investment has David made?

Correct Answer
verified

Which of the following is a requirement of a REIT?

Correct Answer
verified

Which of the following is a true statement?

Correct Answer
verified

Collectibles include rare coins,works of art,antiques,stamps,rare books,paintings,and other items that appeal to collectors and investors.

Correct Answer
verified

Aside from a home,the real property investment most widely favored by the small investor is:

Correct Answer
verified

Exam 17: Investing in Real Estate and Other Investment Alternatives

Indirect real estate investments include investing in real estate syndicates,REITs,and participation certificates.

Correct AnswerverifiedShow Answer

Collecting for investment purposes is very similar to collecting as a hobby.

Correct AnswerverifiedShow Answer

Which type of REIT pools money to finance construction loans?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedThe after-tax cost of owning a vacation ...View AnswerShow Answer

You gain entry to a shopping center investment by investing as little as $5,000 in a limited partnership.

Correct AnswerverifiedShow Answer

Direct real estate investments include single-family dwellings,duplexes,apartments,land,and commercial property.

Correct AnswerverifiedShow Answer

Owen Cartwright has joined a real estate syndicate that bought an office building in downtown Orlando,Florida.What type of investment does he hold?

Correct AnswerverifiedShow Answer

What role can a REIT play in diversifying an individual's investment portfolio?

Correct AnswerverifiedA REIT is an investment in real estate a...View AnswerShow Answer

The investment tax credit has been eliminated entirely for all types of real estate except:

Correct AnswerverifiedShow Answer

David Harris has invested in something that acts like a mutual fund and that invests in construction loans and property all over the country.This investment trades on the New York Stock Exchange.What type of investment has David made?

Correct AnswerverifiedShow Answer

Which of the following is a requirement of a REIT?

Correct AnswerverifiedShow Answer

Which of the following is a true statement?

Correct AnswerverifiedShow Answer

Collectibles include rare coins,works of art,antiques,stamps,rare books,paintings,and other items that appeal to collectors and investors.

Correct AnswerverifiedShow Answer

Aside from a home,the real property investment most widely favored by the small investor is:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
The after-tax cost of owning a vacation ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A REIT is an investment in real estate a...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified