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?