It Is Possible to Have a Secured Real Estate Loan

question 25

Multiple Choice

It is possible to have a secured real estate loan without a mortgage through the use of a contract for deed. In contrast to the standard real estate sale, which of the following events occurs after the closing when dealing with a contract for deed?

• A) Offer
• B) Acceptance
• C) Possession of the property passes to the buyer
• D) Title to the property passes to the buyer

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Definitions:

Discount Factor(s)

A mathematical factor used to calculate the present value of a future amount of money or stream of cash flows.

Intangible Benefits

Advantages or gains from a project or investment that are not directly quantifiable in monetary terms, such as improved customer satisfaction or brand reputation.

Automated Equipment

Machinery that operates with minimal human intervention, often used to increase efficiency and productivity in manufacturing.

Discount Rate

The discount rate is the interest rate used in discounted cash flow analysis to calculate the present value of future cash flows.