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Real Estate
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Real Estate
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A. Residential Properties
1. This is the most common area of real estate practice.
2. There can be specializations within this category, such as:
a. by neighborhood;
b. by absentee owners;
c. by price range;
d. by types of owners, such as absentee or first-time buyers.3. Licensees should be familiar with the National Association of Realtors Code of Ethics.
B. Commercial and Industrial Properties
1. Usually large, often complex transactions.
2. Lower commission rates, but higher prices results in large commission dollars.
3. Salespeople in this field usually have fewer transactions per year than a residential salesperson, but larger commission checks.
A. Involves real estate lending, either for purchase or refinance.
B. Mortgage companies: 2 types
1. Mortgage brokers put together financing packages by bringing together borrowers and lenders. They do not loan their own money. They are a middleman in the transaction, and often work with many different lenders.
2. Mortgage bankers will do the same thing, but in addition, mortgage bankers will also lend out their own money as well. (These loans are usually sold in the secondary market at some later date.)
A. Property management can involve finding tenants and negotiating leases for real property, collecting rents, and performing or supervising maintenance activities.
B. Property managers often earn their income in two ways:
1. There are often commissions earned when a lease is signed. The commission is often some percentage of the total rent to be paid over the term of the lease, or the first year of the lease.
2. There are fees charged for performing the day-to-day property management functions, such as maintenance and tenant relations. This fee is often some percentage of the rents collected.
C. There are areas of specialization within the property management category.
1. Some specialize in residential properties, such as apartment complexes.
2. Some deal in commercial properties, such as shopping centers or office buildings.
A. Participants can range from some of the largest companies in the country, employing thousands of people, to individual contractors who build one home at a time.
B. There are different types of developers:
1. Some buy vacant land, put in street improvements and offsite improvements (such as street lights), and subdivide the land into smaller lots. These lots are then sold without any homes on them.
2. Others will buy those lots and build homes on those lots.
3. Still others will do the entire subdivision process and build the homes as well.
4. Some developers specialize in commercial developments, such as shopping centers or office buildings.
A. The sale of a business opportunity is the sale of an ongoing business, not just the real estate the business owns. In California, the sale of a business opportunity requires a real estate license.
B. Business opportunity sales can require expertise in many different areas:
1. Regulations regarding liquor licenses for the sale of a bar or restaurant;
2. Sales tax laws for sales of a retail business;
3. The ability to read and analyze financial statements.
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Copyright © 2008 Real Estate Trainers, Inc.
