1. List five essential elements of any valid contract. Name two additional essential elements of a valid contract for sale of real estate.
2. Explain why the sales comparison and cost approaches are important methods of property appraisal.
3. Identify the advantages and disadvantages of investing in commercial real estate both directly and through intermediaries.
4. Why do investors care whether the IRS classifies cash expenditures as operating expenses rather than Capital expenditures?
5. What features in a lease make it more beneficial to have a longer term lease than a short term lease?
6. Mortgage lending is heavily regulated by Federal and State laws. Do you think it should be regulated more than many other industries? Why?
7. Discuss the roll of Private Mortgage Insurance in the Residential Mortgage market.
8. Distinguish between Conforming and Non-Conforming residential mortgage loans and explain the difference.
9. Management of Real Estate is very important to maintain the value of the investment. Give several reasons for this and use specific situations.
10. What is the difference between an Equity REIT and a Mortgage REIT?