RLE 85 Ch 12 Final Prep

Front

The bulk of most American’s personal income goes to

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consumption.

Front

The total amount of money remaining after all expenditures have been paid on an investment property is its

Back

cash flow.

Front

In a like-kind exchange of property, one owner gave the other a modest amount of cash to compensate for a slight difference in value between the two properties. Based on these facts, which of the following statements is TRUE?

Back

The additional cash is called boot and is taxed at the time of the exchange by the party who receives it.

Front

A business venture in which a group of people pool their resources to own or develop a particular property is a

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real estate investment syndicate.

Front

For an investment trust to qualify as a REIT for tax purposes, what percentage of its income must come from real estate investments?

Back

75%

Front

How quickly an asset may be converted into cash is referred to as

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liquidity.

Front

Which of the following is NOT a traditional benefit derived from real estate investing? Pride of ownership, Asset building through leverage

Back

Success without expert information

Front

The use of borrowed money to finance an investment is referred to

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leverage.

Front

The investment practice that allows an investor to increase holdings without investing additional capital is referred to as

Back

pyramiding.

Front

Which of the following sets of words describes the properties that must be involved in a tax-deferred exchanges under Section §1031 of the Internal Revenue Code? Like kind, Not-for-profit, Senior housing, Low-income housing

Back

Like kind