Prof Bruce real estate investment trivia quiz

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?

10,000

43,560

45,000

4. where does Archie Andrews live?

nowhere, he’s a comic book character

Rivendell

Riverdale

5. what famous real estate mogul supposedly cowrote The Art of the Deal in 1987 with journalist Tony Schwartz?

Warren Buffett

Donald Trump

Steve Wynn

6. what does “cap” rate stand for?

capitalization rate

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?

animation

mortgage principal paydown

real estate appreciation

interest paid

cashflow

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

buy-hold-drive-up-value-refinance-rinse-and-repeat

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

zero

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?

20 years

25 years

30 years

never

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?

Bedrock

Bedford Falls

17. what is glamping?

glamorous camping

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?

Westboro

Rockcliffe Park

Rothwell Heights

Wuthering Heights

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?

finance

title search

environmental report

building/plumbing/electrical/structural inspections

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

insurance

examination of all deliveries

approval by seller’s attorney

Cheers,

Prof Bruce

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
613-762-8884
bruce.firestone@century21.ca
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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

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