Check Your Understanding Answers
- Define business opportunity.
Real Estate Law defines a business opportunity as the sale or lease of the business and goodwill of an existing business enterprise or opportunity. This also includes the business's stock, trade fixtures, and trade name, as well as a non-competition agreement and lease assignment.
- What are the essential elements of a business opportunity sale?
A bill of sale and specific financial statements, such as a balance sheet and a profit and loss statement.
- What is real estate syndication?
Real estate syndication combines the money of individual investors, along with the management of a sponsor, to invest in real estate and achieve a good rate of return on that investment.
- Describe the two types of Real Estate Investment Trusts (REITs).
- An Equity Trust: A company that invests in real estate itself or in several real estate projects.
- A Mortgage Trust: A company that invests in mortgages and other types of real estate loans/obligations.
