Question 1

Which of the following is a direct benefit of investing in income-producing real estate?

A - The income is always classified as long-term capital gains.

B - The tenant is responsible for any tenant improvements.

C - 1031 exchanges may be utilized for income properties.

D - The depreciation period is shorter than for residential properties.

Question 2

A borrower was offered a home loan of $100,000 with an interest rate of 3%. All appropriate forms and disclosures were utilized. This would be an example of predatory lending if the loan required the borrower to

A - repay the loan in 15 years.

B - make payments every other week.

C - pay a prepayment penalty of 20% of the balance.

D - submit all payments in United States currency.