<<

CAREERS IN

OVERVIEW OF CAREER OPPORTUNITIES & LICENSING REQUIREMENTS Types of Real Estate

Many & Varied Product Types & Sub-categories: • Residential (single family residences (“SFR”), 1-4 dwelling units, condominiums, townhomes, vacation ownership, sea-borne residences) • Multi-family (market rate; student housing) • Retail (Regional Malls, Power Centers, Neighborhood Centers, Strip Centers, Triple Net, Public/Private Concessions, On-site Retail, street front) • Industrial (warehouse, manufacturing, distribution, “pick-pack & ship”) • Storage Facilities (household goods, art, wine, vehicles) • Hospitality (hotel, motel, hostel, resort, residences, restaurants, bars, tourism/convention/visitor bureau) • Golf & Resort • Office • Seniors Housing • Subsidized & Tax Credit Housing Types of Real Estate (cont’d)

• Public Facilities Concessions • Entertainment Venues & Theme Parks • Hospital & Urgent Care Facilities • Assisted Living & Convalescent Facilities • Agriculture (crops, vineyards, orchards, live stock) • Water Rights • Mineral Rights • Rights of Way & Easements • Religious Facilities • Energy Generation Facilities

Urban Planning/Land Use • Government agency • Regional authorities (RWQCB, AQMD, CCC, CEC) • Economic, Demographic & Population Trends • Public / Private Partnerships (Grand Park; LA River Project)

United States Green Building Council (USGBC) • Green Building Design, Construction & Management • LEED - Leadership in Energy & Environmental Design

Risk Management/Insurance • Construction (hazard, defect, wrap, completion and personal guarantees) • Errors & Omissions • Liability • Fidelity Bonds • Workers’ Compensation • OSHA & ADA compliance • Human Resources • EDD compliance • Performance & Completion Bonds • Private Compliance Providers Finance; Lending; Conduits • Institutional Investment Funds • Institutional Investment Fund Advisors • Financial Analyst • Investment Banks (debt markets; RMBS/CMBS • Lenders - A cornucopia of resources: commercial banks; savings & loans; savings banks; corporate debt (e.g., GE Capital); mortgage banks; pension funds; life companies; private equity; credit unions • Mortgage Broker • GSE’s: Fannie; Freddie; FHA; Ginnie Mae • Loan Servicing • Wealth Management

International Right of Way Association (“IRWA”) • Senior Right of Way Agent (“SRWA”) • Mineral Rights; Rights of way (identification, acquisition, easements); Utility Corridor Planning & Acquisition

Conservation Easements • Conservancy land acquisition (holding entities) • Conservation easements • Bureau of Land Management (“BLM”) - Land swaps

Agriculture • Agriculture (crops, live stock, vineyards, orchards, etc.) • Water Rights (acquisition, sale, trading) • Timberland • Brokerage (sales, leasing) Land Use, Entitlement & Development • & Government Regulation • Site Acquisition • Demographic Research & Analysis • Use studies • Land Survey • Title Insurance • Environmental Study, Review, & “Impact Reports” • Financial Modeling & Projections • Design: Architecture, Exterior, Interior • Engineering: Geologic, Civil, Structural, Mechanical • Construction & Project Management

Appraisal • Uniform Standards of Professional Appraisal Practices (“USPAP”)

Commercial Real Estate Brokerage • Sales; Acquisitions; Like-kind Exchanges; Tenants in Common (“TICs”) • Business Opportunities (“Bulk Sales”) • Listing Services (Reis, Loopnet, CoStar, AIR, etc.)

Residential Real Estate Brokerage • Single Family Residences • Planned Unit Developments (“PUD’s”) e.g., condominiums • Time Shares/Fractional Ownership • Listing Services (MLS, Internet, , Redfin, , etc)

California Bureau of Real Estate (“BRE”)

“The mission of the California Bureau of Real Estate is to safeguard and promote the public interests in REAL ESTATE MATTERS through licensure, regulation, education and enforcement.”

BRE Home Page: Essential Information  Verify a Real Estate License  2014 Real Estate Law  Consumer Alerts  Current News  FAQs  Department of Consumer Affairs  Multiple Jurisdiction License Lookup  Forms  File a Complaint  Real Estate Business Resources  Complete List of Publications  Invitation for Public Comment/Hearing Notices  Connect With Us: Call BRE Public Information Line  1-877-373-4LIC (4542)

Real Estate Licensing  Broker License  8 Approved Courses  2 Years of full time experience  Pass State Exam  Complete Application

 Salesperson License  3 Approved Courses  Pass State Exam  Complete Application Resources & Websites

 Bureau of Real Estate www.dre.ca.gov  California Association of Realtors www.car.org  Franchise Tax Board www.ftb.ca.gov  Dept. of Corporations www.corp.ca.gov  National Association of Realtors www.realtor.org  Federal Reserve www.federalreserve.gov  Assoc. of Industrial Realtors http://www.airea.com/HOME/Home.aspx  International Council of Shopping Centers www.icsc.org  Apartment Association of www.aoausa.org  Dept. of Housing & Urban Development www.hud.gov  IRS www.irs.ustreas.gov

Anthony Marguleas, Broker and Owner

310-573-4245x100 work [email protected] 310-293-9280 cell www.AmalfiEstates.com

14 About Anthony Marguleas

• Founded Amalfi Estates, a luxury residential real estate firm based in Pacific Palisades 20 years ago

• Personally sold $600 million in residential real estate. Recently selected by The Wall Street Journal as one of the top 250 agents in the country (out of one million agents).

• Co-authored the book “California Real Estate Client Strategies” as well as published 150 articles.

• Featured in/on: ABC News, Fine Living Network, Wall Street Journal, Consumer Reports and the Los Angeles Times.

15 General Real Estate Market Questions

What year do you think Los Angeles real estate prices peaked last?

Do you think home prices will surpass our last peak?

Are we currently experiencing low inventory?

16 Pacific Palisades’ Annualized Data

Average Year Median Price Change Average Price Change Cost per ft Change # Sales DOM

2005 $1,875,000 11% $2,293,634 18% $752.02 16% 337 62 2006 $2,102,500 12% $2,535,318 11% $801.63 7% 305 66 2007 $2,157,210 3% $2,575,562 2% $856.96 7% 269 63 2008* $2,315,000 7% $2,847,472 11% $841.43 -2% 191 101 2009 $1,950,000 -16% $2,427,691 -15% $682.65 -19% 189 118 2010 $1,820,000 -7% $2,294,299 -5% $684.02 0% 255 109 2011 $1,696,090 -7% $2,139,381 -7% $665.85 -3% 262 83 2012 $1,922,500 13% $2,465,738 15% $709.14 7% 285 87 2013 $2,240,000 17% $2,772,753 12% $818.43 15% 321 70 2014* $2,575,000 15% $3,188,287 15% $884.66 15% 211 63

* Market peak

17 Real Estate Reports • Best ways to gauge the market is The Unsold Inventory Index by taking the existing inventory & divide it by the # of homes that sold the previous month. Over 5 months is considered a Buyer’s market and under 5 months is a Seller’s market.

• Always use annualized data rather than monthly

• Altos reports, www.altosresearch.com $79/month

• Each area, very localized.For ex. 2012 average price

Tarzana was -7% yet Woodland Hills +18% Palisades was +15%, while Bel Air -13%

18 Buyer’s Tips Buyer – Location, location, location!

Ideally have at least 2 of these before one should buy 1) Buy the least expensive home in the area 2) Find creative ways to add value (Change the address) 3) Find a motivated seller (out of area agent, probate sale, DOM(days on market), short sale, (www.realtytrac.com), NOD (notice of default), NTS (notice of trustee sale), REO, bank owned

• When you go to an open house do not ask any probing questions as it hurts your chances of getting a credit if you find out beforehand there is a roof leak. • Back up offers, benefits • Inspections-general, sewer, chimney, (we do 7+ per home) Explain as-is vs. getting credits

19 Financing and Appraisal Talking Points

Who thinks mortgage rates are high now? Who (under 50 yrs old) can guess historically how high mortgage rates have been?

Will higher mortgage rates slow down our market?

Is it that big of a deal if rates go from 4% to 5%?

20 43 year Mortgage Rates Chart

21 Our Marketing

Circulation is 60,000 – Largest advertiser.

22 Photography

Power of marketing

23 Tree trimming-improves curb appeal which increases value Before After

Ex 1

Ex 2

24 Aerial videography

We take professional aerial photos and videos. Here is a sample www.307Holyoke.com

25 Tips to be a Successful Agent • Find a niche, specialty market: EBA (Exclusive Buyer’s Agent, Luxury home specialist, condos, 1st time buyers, or farm a specific geographical area • Over deliver and under commit • Be an expert in your market, go to as many open houses as possible. Study why some homes sold for what they did. Hours for licensee, Dr 9K, dentist 7.5K, lawyer 6K, dental assist 1.5K, taxi driver 104, Realtor was 45 and now 135. • Study the real estate contracts • Listen to your clients and what they really want • Be an assistant to a top agent in your town

26 Thank you! GETTING STARTED

CAREER OPPORTUNITIES IN RESIDENTIAL REAL ESTATE Nancy San Pedro, CPM, MBA Institute of Real Estate Management (“IREM”) VP of Programs Instructor in Training

Common Interest Develpments

 Community Associations Institute ◦ PCAM Designation  Characteristics ◦ Lower margins, complex delinquency actions ◦ Cap Ex., construction projects ◦ Budgeted with DRE guidelines  Skill Set ◦ Public speaking, understanding of CC & Rs

Apartment Management

 IREM, California Apartment Association ◦ Accredited Residential Manager designation  Institutional vs. Private ◦ Level of reporting ◦ On site vs remote management  Class A, B or C  3rd Party vs Owner Operated

Getting Started

 Bureau of Real Estate (formerly DRE) ◦ Salespersons or Brokers License  Internships ◦ UCLA Extension, IREM  Networking ◦ Industry events (IREM, BOMA, CAA) ◦ Informational Interviews  Education ◦ Extension Certificate, MBAs, IREM

GETTING STARTED

 Management of Common Interest Developments (Condos) ◦ Credential - Professional Community Association Manager (PCAM) ◦ Community Associations Institute ◦ Profitability ◦ Skill Set  Apartment Management ◦ Credential - Accredited Residential Manager (ARM) ◦ Institute of Real Estate Management, California Apartment Association ◦ Institutional Mgmt vs. Private

GETTING STARTED

 Getting Started ◦ Licensed California Salesperson (or Broker) with Bureau of Real Estate ◦ Internships ◦ Informational Interviews ◦ UCLA Extension Certificate ◦ Advanced Education & Degrees

Principal Real Estate Management Industry Associations and Certifications

 Institute of Real Estate Management (IREM) www.irem.org ◦ Certified Manager (“CPM”) ◦ Accredited Resident Manager (“ARM”), ◦ Accredited Management Organization (“AMO”)  Commercial Investment Real Estate Institute www.ccim.com ◦ Certified Commercial Investment Manager (“CCIM”)  Building Owners and Managers Association International (BOMA) www.boma.org ◦ Administrator (“RPA”)  International Council of Shopping Centers (ICSC) www.icsc.org ◦ Certified Shopping Center Manager (“CSM”)  Community Association Institute (CAI) www.caionline.org ◦ Professional Community Association Manager (“PCAM”) BUILDING WEALTH THROUGH REAL ESTATE INVESTMENT  Jon Swire ◦ Education ◦ Practicing professionals ◦ Develop Investment Strategies ◦ UCLA Extension Certificate Programs ◦ Achieve Life changing wealth

QUIZ

1. The California Bureau of Real Estate (“BRE”) issues how many different types of real estate licenses? a. one b. two c. three d. four

2. California real estate law requires all Sellers of single family residences (“SFR”) to pay a real estate commission equal to __% of the gross sale price. a. 2% b. 5% c. 6% d. There is no California law that requires any payment of any real estate brokerage commissions to any real estate licensee, upon sale of any SFR

3. In California’s residential real estate market, the customary gross commission Seller should pay is: a. 2% b. 5% c. 6% d. there is no customary commission amount

4. Which of the following is a legally valid form of commission payment to a real estate licensee? a. money and/or promissory notes b. an equity interest in the acquired property c. personal property d. any of the above

5. Which home renovations and/or remodeling projects most often return at least the original capital investment upon resale of the home? a. kitchen or bathroom remodel b. adding one bedroom c. installing a swimming pool/spa feature d. installing a new energy efficient/fire resistant roof e. adding a 2-car garage f. installing an outdoor cooking/dining area

6. Freda, a 39 year old single woman, owns, as her sole and separate property, a 10 acre, 180° view bluff-top, single family residence appraised at $25 million, on the edge of Toyopa Drive in Pacific Palisades overlooking the Pacific Ocean. The property is free and clear of all liens and loans. Freda fell in love with her new bf, 23 year old Jay-Sea-Vu, who has just arrived from Texas and moved in with her as he begins his singing career in Hollywood, and has convinced Freda to marry him. Upon marrying and immersed in wedded bliss, Freda’s Toyopa house: a. automatically becomes Community Property, ½ owned by her husband, Jay-Sea-Vu b. can never become Community Property c. may gradually become Community Property during the duration of the marriage d. remains her Separate Property until she decides to allow it to become Community Property

5. The value of homes and other real estate always appreciates. a. true b. false

6. To obtain a real estate salesperson license in California, an applicant is required to successfully complete more credit hours than a: a. doctor, electrician, psychologist, or chiropractor b. veterinarian, architect, lawyer, or commercial airline pilot c. cosmetologist, police officer, chef, or CPA d. personal trainer, plumber, or dental assistant e. none of the above

THE END THANK YOU AND WE LOOK FORWARD TO SEEING YOU AND TEACHING YOU IN OUR CLASSES !

UCLA EXTENSION