Iaao course 102 Study guides, Class notes & Summaries

Anticipation - ANSWER-Value is created by the expectation of benefits to be derived in the future. Leverage - ANSWER-The borrowing of funds in hopes of earning a greater return than the cost of the borrowed funds. Chattel mortgage - ANSWER-A mortgage only on persona property Yo - ANSWER-Also known as the discount rate, reflects the return on investment. Safe rate - ANSWER-Base rate on the safest investments such as government insured investments (Yo). Risk rate - ANSWER-An amount ...

Quiz #1 IAAO Course 102 with 100% correct answers.

The Economic Principle of Anticipation states that value is created by the expectation of benefits to be derived in the future. The Economic Principle of Substitution states that a property's maximum value tends to be set by the lowest cost or price at which another property of equivalent utility can be acquired. Chattel A mortgage on personal property. Balloon payment A payment on the balance due of a note at the end of the loan term that is in excess of the regular pa...

Capitalization is the process used to: convert income into an estimate of value fixed-rate mortgage A loan secured by real property featuring an interest rate that is constant for the term of the loan is referred to as a (an): anticipation The underlying principle providing the basis of the income capitalization approach is: income divided by rate equals value The basic equation used in the income approach to value is: deficit rent When market rent exceeds contra...

IAAO COURSE 102 with 100% correct answers

Income Capitalization Approach (Capitalization Process) correct answers The value of an income producing property is estimated by converting anticipated benefits arising from the ownership of the income producing property. Components of the capitalization process are: correct answers value, net operating income, and capitalization rate Income capitalization is based on the economic principles of: correct answers Anticipation, Change, Competition, Substitution, Balance, Contribution, Supply...

IAAO COURSE 102 Questions and Answers Already Graded A The Economic Principle of Anticipation states that value is created by the expectation of benefits to be derived in the future. Chattel A mortgage on personal property. Balloon payment A payment on the balance due of a note at the end of the loan term that is in excess of the regular payment amounts. Usually found in a partially amoritized mortgage. Conventional mortgage A loan that is neither insured nor guaranteed by the federal governm...

The Economic Principle of Anticipation states that value is created by the expectation of benefits to be derived in the future. Chattel A mortgage on personal property. Balloon payment A payment on the balance due of a note at the end of the loan term that is in excess of the regular payment amounts. Usually found in a partially amoritized mortgage. Conventional mortgage A loan that is neither insured nor guaranteed by the federal government. Contract rent The actual rent paid in accordan...