What is the primary benefit for a buyer in a "subject to" transaction?

a) Assume personal liability for the loan

b) Obtain the property without qualifying for a new loan

c) Transfer the mortgage to a different lender

d) Pay off the seller's outstanding mortgage balance

What type of entity is typically created by the buyer in a "subject to" transaction to hold the property?

a) REIT (Real Estate Investment Trust)

b) LLC (Limited Liability Company)

c) LLP (Limited Liability Partnership)

d) S-Corporation

a) The buyer

b) The seller

c) The lender

d) The government

a) It is paid off by the buyer at closing

b) It remains in the seller's name

c) It is transferred to the buyer's name

d) It is discharged by the lender

a) ARV - 10% - Repairs - Your Fee

b) ARV - 12% - Repairs - Your Fee

c) ARV - 15% - Repairs - Your Fee

d) ARV - 20% - Repairs - Your Fee

a) Extensive renovations to increase the property's value

b) Minimal cosmetic improvements to enhance the property's appeal

c) Conversion of the property into a different type of investment

d) Repairs to address major structural issues

a) To determine the property's fair market value

b) To identify hidden issues or problems with the property

c) To negotiate a lower purchase price with the seller

d) To assess the buyer's ability to qualify for a new loan

a) True

b) False

a) Immediate transfer of ownership to the buyer

b) Rental income for the seller

c) Future purchase option for the buyer

d) Quick sale for the seller

In the installment for deed strategy, what happens to the remaining purchase price of the home?

a) It is financed through a conventional mortgage from a bank

b) It is paid off by the buyer in cash at closing

c) It is financed through installment payments to the seller

d) It is covered by the seller's outstanding mortgage balance

Which strategy involves the buyer acting as a middleman to assign the purchase contract to another buyer for a fee?

a) Wholetaling

b) Lease purchase

c) Subject to

d) All cash discount purchase

a) To obtain financing for property purchases

b) To defer capital gains taxes when reinvesting in like-kind properties

c) To transfer ownership of a property to another party

d) To negotiate lower purchase prices with sellers

True or False: In a lease option agreement, the buyer has an obligation to purchase the property at the end of the lease term.

a) True

b) False

What is the primary focus of the fix and flip strategy?

a) Generating rental income from the property

b) Holding the property long-term for appreciation

c) Renovating and selling the property for a profit

d) Acquiring properties through seller financing

What is the purpose of conducting a property assessment in the fix and flip strategy?

a) To determine the seller's asking price

b) To estimate the repair costs

c) To negotiate a lower purchase price

d) To assess the buyer's creditworthiness

What is the main objective of the buy and hold strategy?

a) Quick resale of the property for a profit

b) Generating rental income and building equity

c) Immediate renovation and sale of the property

d) Flipping multiple properties simultaneously

What is the purpose of creating an entity (such as an LLC) to hold the property in the subject to strategy?

a) To transfer ownership to the entity

b) To protect the buyer's personal assets

c) To obtain tax advantages for the property

d) To facilitate a quicker sale of the property

What is the primary risk associated with the all cash discount purchase strategy?

a) Potential lack of financing options for future investments

b) Difficulty in finding suitable distressed properties

c) Incurring higher repair costs than anticipated

d) Limited opportunities for generating rental income

Which strategy involves converting a single-family residence into an assisted living facility or senior housing?

a) Wholetaling

b) Lease option

c) Subject to

d)Assisted Living Conversion or Sober Living

True or False: The lease purchase strategy allows the buyer to occupy the property immediately while building equity towards future ownership.

a) True

b) False

What is the primary objective of the wholetaling strategy?

a) Generating quick profits with minimal renovations

b) Acquiring properties at a significant discount for long-term rentals

c) Purchasing distressed properties and assigning the purchase contract

d) Converting properties into vacation rentals for higher rental income

What is the purpose of a home equity line of credit (HELOC) in real estate investing?

a) To obtain financing for property purchases

b) To pay off the seller's outstanding mortgage balance

c) To fund repairs and renovations on properties

d) To borrow against the property's equity for further investments

Which strategy involves renting out properties on a short-term basis to tourists or travelers?

a) Short-Term Rental or Vacation Rental

b) Development and New Construction

c) Master Leasehold

d) Seller Financing

What is the primary advantage of participating in government-subsidized rental programs, such as Section 8?

a) Higher rental income compared to traditional rentals

b) Guaranteed rental payments from reliable government sources

c) Access to lower interest rates for property financing

d) Increased property value due to government oversight

In the buy and hold strategy, what is the main source of income for the investor?

a) Property appreciation upon resale

b) Monthly rental income from tenants

c) Profits from quick flips and renovations

d) Capital gains from tax-deferred exchanges