Marketing I: Building a Real Estate Practice - e-Book

There are seven sections or modules to this course and their learning objectives are listed below:

1. How to Build a Successful Business
   • Understand the risks and requirements of starting a business
   • Be able to create a mission statement, business plan and marketing plan
   • Be able to recognize the significance of market presence
   • Understand the importance of referrals, prospecting and farming
   • Know how to develop effective communication skills
   • Be able to use various marketing techniques in order to promote the services of a real estate brokerage firm
   • Know how to hire and train employees
   • Be able to build lasting relationships with partners and clients
   • Understand the characteristics of an effective manager
2. Asset Management
   • Be familiar with the basic concepts of asset management
   • Be familiar with the common decisions faced by an asset manager
   • Know what a Real Estate Investment Trust (REIT) is and the benefits of investing in one
   • Understand the risks and rewards associated with real estate investment
   • Know how to conduct a useful market study
   • Understand how interest rates affect the real estate market
   • Be able to calculate the depreciation of residential and commercial real property held for business or investment
   • Be familiar with the financial ratio methods of valuation, including Price to Earnings Ratios and Cap Rates
   • Know how to create a pro forma projection for a real estate investment alternative
   • Know the basics of a Discounted Cash Flow (DCF) analysis
   • Know how to use the Net Present Value (NPV) and Internal Rate of Return (IRR) to compare the values of several alternatives
   • Be familiar with distressed properties and how to handle them
   • Know the important factors to consider when refinancing
   • Be able to apply these concepts in the real world
3. Tax-Favorable Real Estate Transactions
   • Identify motivated buying and selling clients.
   • Outline the attributes of qualified and non-qualified products and how they can benefit to the sales process.
   • Describe the restrictive rulings of the 1031 exchange program.
   • Explain how money can be accumulated using pre-tax dollars, accumulating interest on a tax-deferred basis and creating litigation protection.
   • State charitable strategies for creating income and tax relief for individuals or families owning highly-appreciated real estate.
   • Describe charitable gift annuities and the annuity payments, income benefits and tax advantages associated with them.
   • State the parameters that the IRS uses to define a valid "like kind" exchange.
   • Explain the advantages and disadvantages of various exchanging alternatives.
   • Outline the mechanics of a successful tax-deferred exchange and the role of each party in those exchanges.
   • Identify common exchange documentation and describe the role of a qualified intermediary.
   • Define “boot” and explain how to deal with it.
   • Calculate whether a sale is preferable to an exchange.
4. Code of Ethics
   • Identify the definition of ethics used in this course.
   • Briefly describe the four business ethics approaches used in this course.
   • List major categories of the Articles of the NAR® Code of Ethics.
   • Describe the structure of the NAR® Code of Ethics and its supporting materials.
   • Identify at least two aspirational concepts in the Preamble to the NAR® Code of Ethics, describe the concept of general business ethics and identify how the Code of Ethics compares and contrasts with the concept of general business ethics.
   • Describe the concepts of at least two of the following Articles of the Code of Ethics: Articles 1, 2, 3, 9, 11, 12, 16, and 17.
   • Identify possible violations of the NAR® Code of Ethics given interactive learning methods such as case studies, quizzes, role playing and group discussion of fact scenarios.
   • Briefly describe the professional standards enforcement process of a local board or association.
   • Differentiate between intentional fraud, negligent misrepresentation and negligence.
   • List the three violations of antitrust laws: price fixing, group boycotts and market allocations.
   • Describe how the existence of and adherence to the NAR® Code of Ethics is good for the real estate profession.
5. Fair Housing
   • Understand the purpose of the Federal Fair Housing Laws and be able to identify the protected classes covered by the Fair Housing Act.
   • Be aware of the seven activities considered illegal as a result of the Fair Housing Laws.
   • Know the five exemptions from the Federal Fair Housing Laws for property owners.
   • Be able to recognize discrimination in real estate practice.
   • Be able to identify acts considered discriminatory under the Fair Housing Act of 1968 as amended in 1972 and 1988.
   • Understand the purpose of the Federal Equal Credit Opportunity Act (ECOA) and know the classes it protects.
   • Understand the purpose of the Americans with Disabilities Act ADA).
   • Know how the ADA affects real estate practice.
   • Know how Fair Housing Complaints are handled.
   • Know the penalties for non-compliance with Fair Housing Laws
   • Know how to incorporate business practices designed to prevent discrimination by real estate professionals.
   • Understand the purpose of the HUD/NAR Partnership and why it is important.
   • Know the most important principle in following HUD Advertising Guidelines.
   • Be able to identify acceptable and unacceptable words and phrases for use in advertisements.
   • Have learned how to apply those practices that will assist a REALTOR® in evidencing that he or she does not discriminate.
   • Know what the differences are between federal regulations and Texas State regulations on fair housing.
6. Real Estate Appraisal
   • Identify and explain the fundamental concepts and terminology used in real estate valuation and appraisal.
   • Identify the basic capacities and skills of a qualified appraiser.
   • Recognize the valuation principles used in real estate appraisal.
   • Apply value theories to arrive at purchase prices of real estate.
   • Characterize a favorable market for real estate sales.
   • Differentiate the three approaches to value commonly used in appraisal.
   • Follow the eight steps to the appraisal process to arrive at an accurate purchase price.
   • Analyze and interpret an appraisal report.
   • Differentiate between appraisal licensure and certification.
7. Real Estate Finance
   • Understand the basic concepts of real estate financing, and the key terms involved
   • Know how to qualify a buyer for the most common types of loans
   • Be familiar with the use and function of escrow accounts
   • Know what a Mortgage Insurance Premium is
   • Know the underwriting guidelines and process
   • Be familiar with the three most common types of loans: Conventional, FHA and VA
   • Know the advantages and disadvantages of conventional loans
   • Know how to use conventional qualifying ratios
   • Know the advantages and disadvantages of FHA loans
   • Know about the differing FHA qualification ratios
   • Know the advantages and disadvantages of VA loans
   • Be familiar with VA eligibility and qualification periods
   • Be able to calculate the amount of VA entitlement used
   • Be able to calculate VA loan amounts and required down payments
   • Know the process and qualifications for assuming VA and FHA loans
   • Be familiar with other types of loans available
   • Know how to underwrite and close loans

 Course Completion

 Any applicable completion certificates or affidavits can be printed after completing the course and final exam.

 Testing

 Quizzes - There is a quiz at the end of each lesson to test comprehension of the subject matter.

Final Exam - Passing Grade 70%. You can take the final three times.