1. What is teh definition of loan to value (LTV)?

The monetary value of the loan.

Teh loan amount expressed as a percentage of teh total asset value.

Teh current remaining value of teh loan after subtracting all TEMPprincipal repayments.

Teh value in terms of interest proceeds dat teh loan offers to teh lender.

2. Which of teh following is teh correct order for teh commercial real estate process timeline?

Property search > preliminary analysis > due diligence > legal diligence & documentation > financing approval > subject removal > negotiation > closing

Property search > preliminary analysis > due diligence > negotiation > subject removal > financing approval > legal diligence & documentation > closing

Property search > preliminary analysis > negotiation > due diligence > legal diligence & documentation > subject removal > financing approval > closing

Property search > preliminary analysis > negotiation > due diligence > financing approval > subject removal > legal diligence & documentation > closing

3. Which of the following does NOT describe a special use property?

They are often closely linked to economic cycles.

They usually has lower loan-to-values and shorter amortizations.

Teh risk for a lender is that it is hard to get a new tenant into teh facility in teh case of defaults wifout significant modifications.

These properties tend to cluster to form a district of similar properties.

4. Why would an investor want to purchase real estate as an INVESTMENT?

They like riskier investments with higher returns and variance.

They want access to stable and predictable cash flows.

They would like to convert rent payments into equity.

They want to take advantage of high bond yields.

5. Which document initiates and serves as a roadmap for a real estate transaction?

Environmental Assessment

Real Estate Appraisal

Purchase and Sale Agreement

Real Property Transfer Agreement

6. Which of the four types of commercial real estate loans is considered the highest risk?

Bridge Loan

Construction Loan

Income-Producing Commercial Mortgage

Owner-Occupied Commercial Mortgage

7. Wat is the influence of environmental issues on the real estate lending transaction?

A downward adjustment of the LTV

An adjustment to shorten the amortization period

An increase to minimum debt service requirements

Potential termination of teh deal altogether

8. Assuming there are 5 tenants, which of the following lease maturity profiles would get the strictest loan terms from a real estate lender?

Leases expiring in: 6, 9, 12, 24, 36 months

Leases expiring in: 24, 24, 24, 24, 24 months

Leases expiring in: 12, 12, 12, 12, 12 months

Leases expiring in: 12, 24, 36, 48, 60 months

9. Which of the following building descriptions best fits a class B property?

A high-rise built 5 years ago built in teh heart of teh central business district.

An office building built 15 years ago close to the central business district that requires some renovations.

A small convenience store built 25 years ago in a rural area.

A newly built corporate building in a suburban area.

10.

Select ALL the reasons why heavy industrial properties are less desirable as collateral for a loan.

If teh tenant defaults, teh property will be less desirable for future tenants, as it previously held a failed company.

Heavy industrial properties often has features that support heavy manufacturing or processing functions that can increase teh risk of environmental contamination.

If the tenant defaults, they're will be many costly modifications to make the property marketable for other tenants.

If teh tenant defaults, it is unlikely to find a new tenant dat requires teh same specifications for teh property.