Real Estate Investment Quiz

A low-rise office building consists of how many stories...?

• 3-15 stories

• 1-3 stories

• More than 20 stories

• 1 story only

A percentage return on money invested in a property by an investor is referred to as...?

• Cash on Cash Return

• Rate of Return

• Internal Rate of Return

• Profit

A profit on an investment over a period of time, expressed as a proportion of the original investment, is also known as...?

• Pro-forma

• Internal Rate of Return

• Time Value of Money

• Rate of Return

Ely recently purchased a commercial investment property using a jumbo loan from the bank. Ely's use of bank financing is an example of what...?

• Sponsorship

• Leverage

• Speculation

• Crowd funding

This type of lease is typically found in office buildings...?

• Proprietary lease

• Temporary lease

• Leasehold

• Net lease

Individual retail sites in a shopping center are referred to as what...?

• Outparcel

• Anchor site

• Leasehold

• Commercial condominium

Which of the following will allow an owner to buy a larger building, using the same amount of cash...?

• Leverage

• More substantial down payment

• Smaller NOI

• Sponsorship

As opposed to residential property, commercial property is valued based on this...?

• Cash flow

• Comparable sales

• Desirability of the building

• Emotions

A high-rise office building consists of how many stories...?

• More than 15 stories

• More than 5 stories

• More than 20 stories

• More than 10 stories

What is a primary focus of a commercial property owner, as opposed to a residential owner...?

• Interior finishes of the building

• Stability of cash flow

• Desirability of the building

• Aesthetics of the building