Is it better to refinance a property whose value has risen substantially or is it better to sell the property? Why or why not?
REAL ESTATE FINANCE AND INVESTMENTS:
Final Exam
Do yourself a big favor – write very legibly or type. Because this exam is due before Friday, December 17th, at 11:59PM,you may submit your exam electronically earlier than that time. Will not give credit for what I cannot read (so make sure it is a PDF). You may use your book and notes to complete the exam. Be clear as to your reasoning and give helpful examples when appropriate. Do not panic. Am available all week should you have questions. Expect answers with detail commensurate to the question. Do not use your fellow students to help in any way. Use as much space as you like.
This Final Exam is worth 300 total points.
Select from any FIVE (5) of the following for 30 points (10 percent) each:
1. The advantages of increasing the TI allowance rather than offering lower base rent are:
2. React: A building leased to a high–quality tenant is more valuable than the same building leased to a junk credit tenant.
Rent or Buy, tell me why. Be sure to cite for both commercial property as a Schedule–C business property as well as owner occupied residential property.
Rent or Buy, tell me why. Be sure to cite for both commercial property as a Schedule–C business property as well as owner occupied residential property.
3. Is it better to refinance a property whose value has risen substantially or is it better to sell the property? Why or why not?
4. What is a like kind exchange (1031 exchange) and why may it be preferable to an outright sale?
5. React: Mezzanine real estate financings always involve the lender taking a first security collateral position in the property to which they are lending.
6. What are the costs to be considered when selling a property?
