Reference no: EM132221322
1. The most important consideration for a vacant land investment is its
A) location.
B) financing.
C) appearance.
D) physical condition.
2. A lender suggests that a borrower can get a lower interest rate if she agrees to a participation mortgage. In this case, the
A) interest rate is subject to change during the term of the loan based on an external index.
B) borrower must increase the principal portion of the payment regularly, reducing the loan term substantially.
C) lender will get a share of the income and a share of the property appreciation.
D) lender is going to contact several other lenders who will underwrite a portion of the loan.
3. To qualify for an income property loan, the lender will require a
A) property income statement.
B) tenant’s consent form.
C) traffic count survey.
D) homeowners association approval form.
4. All of the following are alternatives for receiving income from mineral rights EXCEPT
A) selling the rights.
B) mortgaging the rights.
C) selling the minerals.
D) leasing the rights.
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