Debt Placement Quiz

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Debt Placement Quiz

Have what it takes to help commercial real estate investors lever up their assets well? Let's see.

Email *

What does CMBS stand for? *

1 point

Commercial Mortgage Backed Securities

Complete Monopoly Blanket State

Conditional Mortgage Bond Security

Certificate Money-Backed Security

Which of these objections are common for borrowers considering CMBS financing? *

1 point

Interest-only is not available

Loan servicing is inflexible

Defeasance (CMBS prepayment) is expensive

Closing costs are often higher than balance sheet loans

Required

Which of these commercial mortgage types are NOT securitized? *

1 point

Freddie Mac

Fannie Mae

Credit Unions

CMBS

SBA 504 loans are able to finance what type of type of commercial real estate? *

1 point

Owner-occupied commercial real estate

5+ unit Multifamily (apartment buildings)

1-4 unit Rental Properties

Commercial mortgages differ from conventional residential mortgages because...
*

1 point

All commercial mortgages require a personal guarantee

The loan term can be different than the amortization period

Commercial mortgages are always floating rate

Commercial mortgages can charge prepayment penalties

Commercial mortgages are never insured by government-sponsored entities like Fannie Mae or Freddie Mac

Required

In a NNN deal, what is the tenant responsible for reimbursing? *

1 point

Landlord's vacations

Maintenance

Mortgage payments

Property taxes

Property insurance

Required

Which of the following types of CMBS bonds has the most limited buyer pool? *

1 point

B-piece

A-piece

Which of the following is least commonly negotiated on a commercial loan term sheet? *

1 point

Interest rate

Amortization

Capital Reserves

Recourse provisions

Appraisal methodology

As long as Net Operating Income increases each year, a higher loan amount always leads to higher investment returns.
*

1 point

True

False

Negative leverage always leads to bankruptcy. *

1 point

True

False

Negative leverage always leads to foreclosure. *

1 point

True

False

Which interest rate index is most commonly used by bridge lenders to establish a floating rate? *

1 point

LIBOR or LIBOR Swaps

SOFR or SOFR Swaps

Treasuries or Treasury Swaps

Syndicated investment deals always require a non-recourse loan *

1 point

True

False

A property's last 12 months of net operating income divided by the cap rate is always the basis for determining property value *

1 point

True

False

As long as no one individual owns at least 20% of the equity interests, then personal guarantees are never necessary.
*

1 point

True

False

Seller carry-back and sponsor equity are interchangeable in the eyes of most senior lenders.
*

1 point

True

False

Rent control leads to less supply in the long run *

1 point

Yes.

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