This blog accompanies the text, Real Estate Analysis: Environments and Activities by Julian Diaz III and J. Andrew Hansz. Student are encouraged to post assignments and original research papers to this blog. Please contact email@example.com for posting rights or to add your program to the blog. Some blog posts and objective questions maybe considered for publication in a future edition of the text.
Monday, April 8, 2013
Chapter 9 Questions
By Matthew Seely
All of the fallowing is Risks of Real Estate according to the book:
All of the fallowing
are Benefits of Real Estate;
Opportunity Costs are
the value of the next-best investment?
Cash Flow is the loss
of money from Real Estate?
A adjusted basis is the
original basis in the property improvement plus any capital improvements, less
investing in a variety of assets to spread risk and, hopefully avoid large losses.
Monopoly’s in Real
Estate are illegal?
Liquidity Risk is?
A.The risk of falling in water
B.The risk of a flood destroying the house, and
all of your possessions.
C.The risk that your home could be worth far less
then what you bought it for.
D.The risk of the time that it takes to sell the a
Real Estate Investment?
Before tax Cash Flow:
PGI Less V&C = EGI , EGI Less OE =
NOI, NOI less ADS = BFCT