True or False
Real estate
investors are the entrepreneurs of the real estate business. They build value
by producing space, they spark the entire real estate system to life when they
find some human need for space.
FALSE: Developers are the entrepreneurs of the real
estate business.
Multiple Choice
When developers
evaluate risk and return they usually have an operative attitude that consists
of …
(A)
Conserve capital, don’t spend your own money
until you absolutely have to
(B)
Invest as much as you can in the beginning to
get a quick start
(C)
Mitigate risk, avoid exposure to hazards by
passing them along to others
(D)
None of the above
(E)
Both A and C
E
True or
False
When developers are
looking at going into a new development project they are looking for different
ways to kill the deal. They will abandon the deal if they either have to spend
too much of their own money or they are taking on too much risk.
TRUE
True or False
In stage 1 of the of
the real estate development process developers are looking for a target market
area. They do this by conducting a productivity analysis.
TRUE
Multiple Choice
When a developer is
looking to take control of a property without buying the property they purchase
a(n)…
(A)
Optional lease
(B)
Certificate of occupancy
(C)
Exclusive option
(D)
Future purchase contract
C
Multiple Choice
Which one of these
choices represents the correct process of real estate development?
(A)
Design the project, Refine the concept,
Examine project feasibility, Conceive
a project
(B)
Refine the concept, Examine project
feasibility, Design the project, Conceive
a project
(C)
Conceive a project, Refine the concept,
Examine project feasibility, Design the project
(D)
Conceive a project, Examine project
feasibility, Refine the concept, Design
the project
D
True or False
Once the developer
has moved on towards securing investor capital, if they have deemed that the
project could be a failure they can still drop the project without any serious
repercussions.
FALSE: If a developer has moved past the first 3 stages
they will need to commit fully to the project that they are doing or they run
the risk of losing large amounts of their own investment and possibly
True or False
The construction
stage is when the developer is exposed to the most risk and it is when time is
the most crucial.
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