RDEV 250 QUIZ 2: Real Estate Development

Which of these are three main factors of production?

Land, labor, and capital

Balance sheet

a financial statement of assets, liabilities, and equity of a person or business at any given point

Equity

how much you or your net worth after you have paid your bills, debts, and mortgage

Escheat

the transfer of estate assets or property to the state if an individual dies intestate or without a will or legal heirs

Eminent domain

the right for the government to take private property for public use, with payment of compensation

Diversification

having different types of investments

Tax advantage

economic bonus which applies to certain accounts or investments that are by statute, tax-reduced, tax-deferred, or tax-free

Leverage

the use of various financial instruments or borrowed capital invested in multiple avenues to increase the return of an investment

Cash flow

passive income as a byproduct of owning a rental property and leasing it to tenants for a monthly rental income

Real estate development analysis

the process of analyzing investment opportunities to determine whether or not they meet your investment goals

Real estate development

the process of bringing built space to fruition starting with an idea and ending when consumers occupy the space put in place

Fee simple ownerships is limited by 4 governmental powers. They are ____.

Taxation, eminent domain, police power, and escheat

All of the following are factors in determining the economic feasibility of a real estate development ...

a. Market analysis

c. Site selection

d. Maps and surveys

Match a process that goes into a real estate development project to its correct design phase: Market and economic feasibility analyses

pre-construction phase

Match a process that goes into a real estate development project to its correct design phase: Property management

post construction phase

Match a process that goes into a real estate development project to its correct design phase: Following a schedule for building

construction phase

Please list the 8 stages of real estate development

1. Idea generation/inception

2. Idea clarification/refinement

3. Feasibility

4. Contract negotiation

5. Formal Commitment

6. Construction

7. Building completion and opening

8. Property, assets, and portfolio management

Match the order proceeding with a real estate project

1. Idea development

2. Pre-development financing

3. Building a development team

4. Construction financing

List 4 steps to a real estate investment analysis (REIA)

1. Feasibility and Market (determine property's market value)

2. Calculating Cost (of operations)

3. Trends and Market comps (find rents from the market)

4. ROI Target (calculate return on investment)

Fee simple title - in common law countries the estate in the land that a person has when the lands are given to the individual can be passed on to their heirs, sold and can be mortgaged (collateral)

True

A housing voucher that can be spent on rented housing, such as section 8 public housing. Section 8 is from the Housing Act of 1937, which has been modified from time to time authorizes payment of rental housing assistance to private landlords or behalf of low-income households where a family's gross income may not exceed 50% of the total median family income.

True