REAL ESTATE 306 MIDTERM 1 ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS

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REAL ESTATE 306 MIDTERM 1 ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS Time value of money - Answer -Money today is worth more than money in the future decrease in purchasing power due to increase in money supply or significant increase in demand (inflation) With all things being equal, money now is better than money later money could be earning interest or working for us Motivation behind investment Time value of money formula - Answer -FV - Future value PV - present value i - interest rate T - time period (how many years) Real estate as an asset - Answer -A useful or valuable thing Provides a current, future, or potential economic benefit Physical and non-physical assets Real estate as a bundle of legal rights - Answer -What you can legally do with the property Examples - zoning, floor area ratio (FAR), form based code Dynamic interactions - Answer -People involved in the real estate industry and profession Over the years of land use - Answer -As of 2010, developed land represented approximately 6% of land in the US Since 1982, the amount of developed land has increased 55% Land does not necessarily have intrinsic value - the value lies in the Need assistance on Online classes, Exams & Assignments? Reach out for instant help!! Full Course Assistance, Plagiarism-free Essay Writing, Research Paper, Dissertation, Discussion Posts, etc…. Confidential & Secure services. Tutors are available for all subjects! Email now at: tutorjean01@gmail.com potential uses of the land Development process - the beginning - Answer -The idea Site selection Securing the site Development process - the middle - Answer -Design Approvals Financing Construction Development process - the end - Answer -Leasing Management (asset and property) Making a profit? Sell or hold? Real estate cycle - Answer - Types of asset classes - Answer -Equities (stocks) Fixed income/debt Cash/cash equivalents Real estate and commodities Unique advantages of the real estate asset class - Answer -Use of leverage Inflation hedge Tangible assets Depreciation benefits 1031 exchanges - tax benefit Depreciation - Answer -An accounting method of allocating the cost of a tangible or physical asset over its useful life or life expectancy Need assistance on Online classes, Exams & Assignments? Reach out for instant help!! Full Course Assistance, Plagiarism-free Essay Writing, Research Paper, Dissertation, Discussion Posts, etc…. Confidential & Secure services. Tutors are available for all subjects! Email now at: tutorjean01@gmail.com