See how well versed you are in terms of real estate investing… try answering these 25 questions then check your answers here, https://brucemfirestone.com/prof-bruce-real-estate-investment-trivia-quiz-answers/.
1. in which decade from 1950 to present day did mortgage interest rates reach their peak?
1950s 1960s 1970s 1980s 1990s 2000s 2010s
2. what does PIT stand for?
planning and information technology
principal interest and taxes
3. how many square feet in an acre?
4. where does Archie Andrews live?
nowhere, he’s a comic book character
5. what famous real estate mogul supposedly cowrote The Art of the Deal in 1987 with journalist Tony Schwartz?
6. what does “cap” rate stand for?
the end cap of an aisle in a grocery store
7. can you write out the formula—how to calculate cap rates?
cap rate = AR – AP, accounts receivable less accounts payable
cap rate = NOI/FMV, net operating income divided by fair market value or book value/cost
8. what are the three main types of return from real estate investing?
mortgage principal paydown
real estate appreciation
9. what does “agritainment” mean?
a new type of cash cropping
a combination of agriculture and entertainment
10. what does Warren Buffett prefer in terms of investing strategies— timing markets/buying and selling/trading or buy-hold-drive-up-value-refinance-rinse-and-repeat?
timing markets/buying and selling/trading
11. what’s the difference between a partner and an investor?
a partner just wants an ROI, return on investment, while an investor wants a say in the business
an investor just wants an ROI, return on investment, while a partner wants a say in the business
12. what’s the best/optimal number of partners to have?
1 in a 50/50 deal
1 in a 51/49 deal
more than 1
13. why do so many municipalities want to ban tiny homes?
because they’re unsafe
because they can’t be assessed for property taxes (because they’re on wheels) and NIMBY neighbors may complain
because they’re too small to live in year-round
14. how long does it take to pay off an interest-only mortgage?
15. In Scotland, folks paint their front doors red:
a) to ward off evil spirits,
b) because they’ve paid off their mortgages or
c) to celebrate Scotland Independence Day?
16. in what town did Fred and Wilma Flintstone live?
17. what is glamping?
a new form of mountaineering
18. what is the High Line?
the 12.9 km (9 mile) Confederation Bridge joining Borden-Carleton, Prince Edward Island and Cape Jourimain, New Brunswick
a 1.45-mile-long elevated linear park in NYC, developed on a former New York Central railroad spur on the west side of Manhattan and now the no 1 tourist attraction in New York
19. what is a “garden level suite?”
a home with French doors opening up at grade into a garden
a lower level or basement in-home suite with its own separate entrance from the street first made popular in inner-city brownstone designs in Brooklyn New York in the late 1880s and early 1900s
20. what is the one neighborhood in Ottawa Canada that does not allow coach houses or in-home apartments?
21. how did Gustave Eiffel get his Paris tower approved in the 1880s over the NIMBY objections of the “Committee of 300” (one for each meter of the tower’s height) who described his project this way, “…imagine for a moment a giddy, ridiculous tower dominating Paris like a gigantic black smokestack, crushing under its barbaric bulk—Notre Dame, the Tour de Saint-Jacques, the Louvre, the Dome of les Invalides, the Arc de Triomphe, all of our humiliated monuments will disappear in this ghastly dream?”
by bribing the mayor of Paris
by falsely promised that the Eiffel Tower would only stand for 20 years after the 1889 Exposition Universelle
by suing the Committee of 300
22. what does NIMBY stand for?
not in my backyard
no is my best yes
23. what does PIMBY stand for?
prevention in my backyard
please in my backyard
24. what are the three main ways to appraise/value property?
on the basis of comparables (what other properties of comparable type in similar locations sold for recently)
by examining its cost to complete (or replacement cost less accumulated depreciation)
by asking neighbors what they think
on an income basis (by dividing its NOI (net operating income) by the applicable, market-set, cap rate)
by asking your accountant for his/her opinion
25. can you select buyer conditions you might see in an agreement of purchase and sale—the things a buyer might want to check before buying property—from this list?
pre-consultation with the city (to check on things like zoning and development potential)
approval by buyer’s attorney
review of leases/management agreements/chattels/fixtures/inventory/survey/building plans/property tax assessments/operating costs/utilities etc
examination of all deliveries
approval by seller’s attorney
FOR REAL ESTATE INVESTMENT AND BUSINESS COACHING THAT’LL HELP YOU PROVIDE FOR YOURSELF AND YOUR FAMILY FOR 3-GENERATIONS, PLEASE CONTACT:
Bruce M Firestone, B Eng (civil), M Eng-Sci, PhD
Real Estate Investment and Business coach
ROYAL LePAGE Performance Realty broker
Ottawa Senators founder
BOOK YOUR FREE CLARITY CALL WITH PROF BRUCE NOW, https://brucemfirestone.com/coaching/prof-bruce-real-estate-investment-and-business-coaching/talk/
• MAKING IMPOSSIBLE POSSIBLE
• FREEDOM VIA REAL ESTATE INVESTMENT AND PB4L, PERSONAL BUSINESS FOR LIFE
• FEHAJ, FOR EVERY HOME A JOB, FEJAH, FOR EVERY JOB A HOME
• MAKE YOUR HOME WORK FOR YOU, INSTEAD OF YOU WORKING FOR IT
• HIGHER ROI NOT JUST FOR OWNERS AND INVESTORS, BUT FOR TENANTS, GUESTS, VISITORS, NEIGHBORHOODS, COMMUNITIES, TOWNS, VILLAGES, CITIES AND THE ENVIRONMENT TOO
image source: https://commons.wikimedia.org/wiki/File:Game_Show.jpg
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