Week P Cue Cards

Question	Answer
Two types of directive real estate investments	Direct: Purchase whole/part of property Indirect: Invest in financial product whose performance is linked to property
Define Equity Reit	Company that owns/operates income producing properties
A diversified pool consists of only Offices T/F	False Distinctive focuses on offices Diversified does Offices, Apartments, Malls, hotels etc.
REITs use rental income generated from properties to pay cash return to unit holders T/F	True
Mortgage REITs Purchase existing mortgages or MBS (Revenues are generated by interested earned on loans) T/F	True
REITs cannot provide a tax shelter as depreciation cannot be passed to investor T/F	False They do provide tax shelter when depreciation is passed to investor
What is a subprime mortgage?	Mortgage granted to individuals with poor Credit Ratings
What are Mortgage Brokers for? Who pays them?	They help the buyer find the right mortgage with the right mortgagee. Intermediaries usually pay them as they bring in business.

Resource summary

	Created by dylan_earl about 9 years ago