Practical Applications
Asian Real Estate Association of America-promoting sustainable homeownership opportunities in Asian-American communities
AREAA
a provider has a direct ownership interest of at least 1% in another provider, a provider has an affiliate relationship with another provider, a provider refers business to the other provider, a provider positively influences clients to select the other provider
Affiliated Business Arrangements
$200-1000 a month
Average business cost each month for licensee?
rent these then when rezoning completed turn them into offices and increase value considerably
Best way to utilize investment property-homes targeted for rezoning
brokerage pays unemployment taxes, brokerage withholds income taxes, may receive benefits, works at certain location, work in certain order, set hours by someone with brokerage, compensated for hours worked, tools provided, expenses paid
Employee
seminars
Great for introducing a new subject area, and for receiving tips from experts that aren't available elsewhere
include disclaimers and disclosures, keep information up to date, ensure the accuracy of all information
How can licensees avoid litigation when using databases like the MLS?
follow all advertising rules and obtain the client's permission
How to avoid litigation when publishing a client's listing online?
lack of english language skills make the homebuying process hard to follow
Immigrants find it particularly difficult to obtain a home loan because _____
National Association of REALTORS (NAR)
Members of what organization can refer themselves as a REALTOR?
advance sustainable hispanic homeownership
NAHREP
promotes democracy in housing
NAREB (National Association of Real Estate Brokers)
required from all parties involved in a transaction in which a title is transferred as early as possible in the relationship with each party and no later than the execution of an offer to purchase real property when there is an affiliated business arrangement
RESPA affiliated business arrangement disclosure statement
allows employing broker to assign his supervisory responsibilities to a senior broker in the firm if the employing broker is the listing agent and employs an agent who represent the buyer clients
Rule 31
employed agents can share information with employing broker (broker supervising them)
Rule 45
designated brokerage relationships in real estate act
This act created designated brokerages and defined roles of employing broker and employed broker
common law employee
This worker is classified by the common understanding of the profession, such as a food server
NAR code of ethics and standards of practice as well as the real estate code of ethics, enforced by the state
What are members of NAR bound by?
business cards, MLS fee (annual or quarterly), lockbox fee, continuing education, license renewal, automobile insurance, errors and omissions insurance
What are some ongoing fees for new licensees?
pre-licensing education, exam fee, licensing fee
What are the one time fees for new licensees?
FHA-backed loans
What did Zillow's Chief Economist believe offers hope for the home buying future of minority Americans?
Hispanics, because this population is growing quickly and the median age is rising
What group is expected to significantly increase their rate of homeownership in the next decade and why?
$2000-4000
What is the average start up cost for a new licensee?
email, social networking, websites
Which types of technology are licensees prone to litigation exposure when they use technology in their work?
independent contractor
Who receives 1099 forms for tax-preparation? Employee or independent contractor?
home inspectors
______ can be either a blessing or a curse, since their licensure isnt required in colorado and they can sometimes scare away buyers if they over-dramatize repair needs
transaction-brokerage
a licensee assists one or both parties to facilitate a transaction but does not represent or advocate for either party
dual agency
a licensee represents and advocates for both parties in a transaction
single agency
a licensee represents one and only one party in a transaction and advocates for that party
cookies
a small text file that remembers your preferences or tracks your browsing activities
mortgage brokers
act as a liaison between your clients and their lender to keep the loan application moving along through the process
designated brokerage
an employing broker assigns a difference licensee within the same firm to represent each side of a single transaction
backups
an extra copy of computer files that can be used to recover data when the original files are lost or damaged
statutory employee
an independent contractor who's treated as an employee for employment tax purposed, such as delivery driver paid on commission
the more you keep your finger on the pulse of the industry, the better able you will be to recognize and capitalize on potential opportunities
as a licensee, why do you need to stay up on current real estate market trends?
buy properties and earn income by leasing them
buy and hold
five or more dwelling units
commercial residential is
cloning
copying a website for the purpose of obtaining money or data
increased density
demand for a mix of residential and essential services, such as schools, shopping and transportation
aging baby boomers
demand for affordable, low-maintenance housing near health care facilities
greener buyers
demand for energy-efficient homes made of sustainable and non toxic housing materials
smaller houses, bigger house
demand from first time homebuyers for something affordable and from wealthy buyers for a starter castle
designations and certification
excellent for establishing a licensee as serious about the profession and extending in a particular area
your profession
finish the phrase-be a credit to
your goals
finish the phrase-commit to
a niche
finish the phrase-focus on
everyday
finish the phrase-make new connections
sphere marketing and farming
finish the phrase-spend money on
past clients
finish the phrase-stay in touch with
purchase distressed propertiess, fix them and then sell them
fix and flip
those that are recurring and are the same each time they occur
fixed costs
you need to determine the % of clients that turn into closed transactions, using average dollar value that you earn per transaction, you can calculate how much each client is worth and then determine your annual income
funnels
conferences
good for professional networking and offer a range of educational opportunities to choose from in one setting
firewall
hardware/software that controls network internet access
research and ask broker or colleagues for advice
how can a newly licensed real estate professional estimate monthly business expenses
business expense history
how can an experienced licensee determine how to control their business expenses?
the owner pays a fair market rent and includes this (plus the tenants rent) in annual income
how can investors reside in their own plex and use it as a tax shelter
on the Division of Real Estate Website
how do brokers disclose they just entered into an affiliated brokerage arrangement to the CO Division of Real Estate?
10-15
how many impression will it take to make a connection in your farm area?
$5000 for first offense, $25,000 for subsequent violations
how much can an employing broker be fined for misclassifying an licensee?
at least monthly
how much should you be maintaining contact in your farm area?
HTTPS
hypertext transfer protocol, secure
property taxes, insurance, maintenance, utilities, and improvements
if an investor lives in their plex what can they write off on their income taxes
leverage borrowed
investors seek to _____ funds to gain maximum return from their investment
yes
is there a significant gap between the homeownership rate of minority races and the white majority?
no, it is mandatory
is web presence optional?
closing officers
keep track of paperwork that's due, remind the parties of upcoming events and deadlines, and make sure that all signatures are received
independent contractor
lack of control over the individual by the employing party, not classified as employee, such as doctor
malware
malicious software designed to do harm to systems or data
required CE
mandatory education required to maintain licensure
phishing
misleads people into divulging confidential info by making fraudulent requests for information
fiscal and tax policies
one consistent influence on real estate market trends is the government's _____
younger median age
one reason that minority groups tends to be homeowners less frequently than white Americans is due to a _____
NAHREP
purpose-driven organization proppelled by a passionate combination of entrepreneurial spirit, cultural heritage, and the advocacy of its members
the property must be renovated in accordance with the federal historic property guidelines and certified by the US dept of the interior, once renovated can not be used as private residence
restrictions on renovating historic properties
adware
software that can display advertising to the user and may monitor browsing activity
keylogger
software that captures keystrokes; used to gather private information such as passwords
spyware
software that secretly collects and sends information about your computer to others over the internet
cloud
storage for data on the internet, rather than on a local computer
brokerage relationships in real estate act
this act created single agency and created transaction-brokerage
statutory non-employee
this worker is treated as self-employed by statute for all federal tax purposes, such as licensed real estate agent
a party to a transaction that the broker isn't working with
to whom should a colorado broker give the pre-established relationship disclosure
encryption
turns information into indecipherable code
recurring or occasional costs that are not the same amount each time they occur
variable costs
increased reliance on technology, move toward niche marketing, the adoption of new business models
what are the current market trends for real estate?
farm area, sphere of influence
what are the top two places you should spend your marketing dollars?
language, young age, lack of affordable housing, discrimination, access to credit
what are the typical barriers to homeownership faced by minority groups?
Schedule C
what form do independent contractors file with the IRS to deduct business expenses?
provide instructions about using social media and technology in policies and procedures manual
what is a best practice for brokerages to prevent licenses from making mistakes in online advertising that could lead to litigation?
a property that has been designated an historic by US Department of Interior and is listed in the National register of Historic PLaces
what is a historic property
generating leads=generating income
what is the main takeaway about how the funnel concept works?
30%
what is the maximum percentage of your income that you should plan to spend on marketing?
geographic location or personal niche
what is your farm area?
cultivating a sphere
whats the difference between success and failure in real estate?
to determine whether the worker is exempt or non-exempt for purposes of the fair labor standards act
which is the following is a reason that the federal and state government classify workers into taxing categories?
title company
which third party providers can provide you with mailing lists for your marketing
employee
who fills out W-4 form? Employee or independent contractor?
independent contractor
who fills out W-9 form? Employee or independent contractor?
properties under contract with contingency and then sells the property for more money to other investors
wholesale
yes, in terms of lending requirements, regulation relating to settlement service providers and antitrust law, fiscal policy and tax policies
will the government continue to play a major role in real estate?