How can diversification of a real estate portfolio potentially impact one's investments?

a$.$ Lowering your geographic, tenant, lease expiration, and asset risk exposure

b$.$ Enhancing your revenues

c$.$ Creating economies of scale

d$.$ All of these

The terms positive leverage and negative leverage describe the effects of debt on cash returns. What are the metrics used in determining positive or negative leverage?

a$.$ Weighted average cost of capital and annual interest rate

b$.$ Annual property cash flow yield and annual interest rate

c$.$ Equity multiple and annual property cash flow

d$.$ Compounded annual growth rate and annual interest rate

Why do mezzanine loans carry higher interest rates than senior loans?

a$.$ They occupy the largest portion of the capital stack

b$.$ The mezzanine lender is taking on additional risk due to their subordination to the senior lender

c$.$ The mezzanine lender receives a share of property income above a certain level

d$.$ The mezzanine debt is secured by the real estate

The largest portion of a real estate transaction's capitalization is typically what?

a$.$ Mezzanine financing

b$.$ Common equity

c$.$ Junior debt

d$.$ Senior debt

Combining the expected annual cash$-$on$-$cash yield with the expected annualized capital appreciation gives you a quick estimate of what?

a$.$ Weighted average cost of capital

b$.$ Equity multiple

c$.$ Total annual return

d$.$ Compounded annual growth rate

True or False: The best outcome lenders can expect is to just get all of their money back.

a$.$ True

b$.$ False

$7$