1. If a real estate sponsor raises money for a venture with "promote" structure, the investor typically contributes funding and the sponsor contributes all of the following EXCEPT:

A. Expertise

B. A percentage of the funding equal to the sponser percentage ownership of the deal

C. The opportunity itself

D. Asset and entity management capabilities

2. One common method for real estate entrepreneurs to raise capital is to approach investors that meet certain "net worth" or income standards under federal securities laws (known as a Reg. D). Investors meeting this test are usually referred to as:

A. Accredited Investors

B. 1 percenters

C. Wealth-tested invesetors

D. Sec-appproved investors

3. Real estate entrepreneurs often need to raise investor capital to complete acquisitions. However, raising money from "investors" is a highly regulated area of law. Federally, the S.E.C. (Securities and Exchange Commission) has extensive guidelines on this. The S.E.C.'s mission includes all of the following EXCEPT:

A. Protest Investors

B. Maintain orderly, efficient markets

C.Facilitate capital formation

D.Create jobs

4. investors who fund private real estate ventures with sponsors are often amenable to sharing the upside with that sponsor. Usually, however, before any upside sharing of cash flow occurs, the investors would require:

A. Guarantee of performance from the sponsor

B. "preferred return" on the invested capital

C a complete and final accounting of all prfoits over the life of the deal

D. A "bond" or insurance policy of some sort guaranteeing the return at least their capital amount

5. Cash flow distributions from a real estate venture with sponsor promote structure will normally require an analysis, generally referred to as:

A. waterfall analysis

B. Capital anaylsis

C. capital account reconciliation

D. pari-passu analysis