Money Money Money Money…Some want it, others love it and it seems like every body needs it. But do we as real estate investors understand how to manage our money and finances well? Real Estate Investors deal with all sorts of real estate investment terms and investing strategies that require them to be sharp and accurate with their numbers and investing cash. After reading a magazine last month which featured a money quiz on retirement accounts and planning and I thought I would make up my own “Money IQ” real estate investor quiz. Here is a fun quick 10 question real estate investor smart money quiz to test how sharp you think you are as a real estate investor.
Smart Money Real Estate Investor Quiz
1. What Does APR mean?
A. Annal penalty rate, what you owe if you don't pay in full
B. Annual percentage rate, the total cost of credit over a whole year, including interest rate and fees
C. Annual payoff rate, how long it takes to pay a debt
2. What does it mean when your investment house is “underwater”?
A. The basement frequently floods
B. The mortgage has been paid off
C. The home's value is less than what you owe on the mortgage
3. Most credit scores range from 300 to 850?
4. What is a reverse mortgage?
A. A loan, for homeowners 62+ that allows them to convert home equity into cash with having to sell or vacate. The loan is repaid when they die, move or sell the home
B. An agreement to sell a home, once its mortgage has been paid in full, directly to a bank/lender/investor. That lender then pays the seller monthly “mortgage” installments.
C. A one-time cash payout by lenders to reward homeowners who pay off their mortgages before their due dates
5. What is a Short Sale?
A. The sales of a small house
B. When a bank/lender agrees to accept the sale of a home for an amount less then what is owed on mortgage
C. When a home sells and closely quickly in less then 10 days
6. What is a credit report?
A. Your available credit line at banks and other lenders
B. A list of your financial assets and liabilities
C. Your borrowing and bill payment history
7. Which is a better deal:
A. Getting $100,000 at once
B. Getting a penny that's doubled every for hour for a month
8. What is Private Lender?
A. Credit Union mortgage lender that comes to your house to sign loan documents
B. Individual(s) that loan money for real estate investments and use the property as main criteria for lending
C. Someone who does not go to title companies for closings
9. What does “BPO “mean:
A. Buying Price Option
B. Broker's Price Opinion
C. Business Plan Order
10. What does “CAP RATE” mean:
A. The ceiling amount of money you plan to put in an investment
B. The maximum amount of interest a lender can charge you on an investment
C. Capitalization rate of return is used to compare cash flow investments by dividing annual income by net operating income
Real estate investors so how did you do?
This was jut for fun to get the brain juices flowing this week and not scientific at all. As real estate investors we should always be well-informed about our investments and be keeping up with investing trends. Sites like REIClub.com, SmartMoney.com and MSN Real Estate are great places to visit each week to keep abreast of real estate news, investing terminology and learn to use tips to make more money in real estate investing.
Here are the answers to see just how savvy and financially sharp your are as a real estate investor.
Wishing you the best investing week….