2471107
Description
Flashcards by dylan_earl, updated more than 1 year ago
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Created by dylan_earl
over 10 years ago
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| Question | Answer |
| Two types of directive real estate investments | Direct: Purchase whole/part of property Indirect: Invest in financial product whose performance is linked to property |
| Define Equity Reit | Company that owns/operates income producing properties |
| A diversified pool consists of only Offices T/F | False Distinctive focuses on offices Diversified does Offices, Apartments, Malls, hotels etc. |
| REITs use rental income generated from properties to pay cash return to unit holders T/F | True |
| Mortgage REITs Purchase existing mortgages or MBS (Revenues are generated by interested earned on loans) T/F | True |
| REITs cannot provide a tax shelter as depreciation cannot be passed to investor T/F | False They do provide tax shelter when depreciation is passed to investor |
| What is a subprime mortgage? | Mortgage granted to individuals with poor Credit Ratings |
| What are Mortgage Brokers for? Who pays them? | They help the buyer find the right mortgage with the right mortgagee. Intermediaries usually pay them as they bring in business. |
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