1. © 2015 OnCourse Learning California Real Estate Practice, 3 rd Edition

2. © 2015 OnCourse Learning HOW TO READ THIS BOOK Chapters 1 - 16 include a list of the new “Key Terms” with brief definitions. Review before starting each chapter. In the body of each chapter these terms are set in boldface italic type with in-depth discussion. At the end of each chapter are questions to help you test yourself on your comprehension of the material. The answers are in Appendix A. A glossary of terms is also at the back of book.

3. Starting Your Real Estate Career 1.1 History and Background © 2015 OnCourse Learning Chapter 1

4. © 2015 OnCourse Learning Real estate has many Complex legal theories and Unusual fact situations Clear Communication becomes critical !

5. © 2015 OnCourse Learning This means clear communication with and between: Clients Customers Regulatory authority The public Other licensees Your principal broker

6. © 2015 OnCourse Learning Your Primary Purpose as a Professional: Customer Service Consumer protection Then Compensation

7. © 2015 OnCourse Learning Service must include: Protecting your broker Protecting your broker’s principal (client) Protecting yourself Thereby protect the Reputation of every Professional Real Estate Licensee

8. Service = providing helpful activity for another © 2015 OnCourse Learning Service to one licensee may not fit the definition of “service” to another. Service is the variable that makes “identical service” unlikely. Service may vary with the time and expertise of the provider.

9. The only constant is “change!” © 2015 OnCourse Learning o Land values o Buyer seller needs o Perceived values o Markets o Economies o Local building codes

10. Perception Market strength/weakness supply and demand Which are affected by: Buyer and seller knowledge Motivation Product differentiation Knowledge of the broker and licensee Terms and conditions © 2015 OnCourse Learning It’s a complex marketplace.

11. Multiple Listing Services aid by providing: Universal access to members Public access to buyers and sellers Current information on pricing Supply and demand Competitive pricing data © 2015 OnCourse Learning

12. Some definitions: Licensee: a person, whether broker or salesperson, licensed under the provisions of BPC 10011. Real estate broker: a person who, for compensation or expectation of compensation,... does or negotiates to do one or more of the following acts for another or others: – Sells or offers to sell; buys or offers to buy; solicits prospective sellers or purchasers of; or negotiates the purchase, sale, or exchange of real property or a business opportunity. – Leases or rents or offers to lease or rent. Assists or offers to assist in filing an application for the purchase or lease of, or in locating or entering upon, lands owned by the state or federal gov’t. – Solicits borrowers or lenders for or negotiates loans... – Sells or offers to sell a real property sales contract, or a promissory note... – See BPC 10132 or text page 6 and 7. © 2015 OnCourse Learning

13. 1.2 Facts and Myths English common law defined “property” as: – A bundle of rights: Possess Use Encumber Transfer Exclude others © 2015 OnCourse Learning

14. Myth number one: California real estate licensees sell real estate. © 2015 OnCourse Learning

15. Brokers and licensees have only two things to sell. Can you name them? © 2015 OnCourse Learning

16. The Two Things You Have To Sell Are: Time Knowledge © 2015 OnCourse Learning

17. Myth number two: All licensees offer the same service so they should all be paid the same fee. © 2015 OnCourse Learning

18. Activity for which a license is required may be the same for every licensee but the service actually may differ. © 2015 OnCourse Learning

19. By definition, there is only one “agent” with every real estate firm. That “agent” is the “designated broker.” © 2015 OnCourse Learning

20. Myth number three: Success or Failure is something that just happens. © 2015 OnCourse Learning

21. Success or failure is a choice and you will learn from each one. © 2015 OnCourse Learning

22. Whether you believe you can or believe you can’t you are right. Your BELIEF determines your reality. © 2015 OnCourse Learning

23. 1.3 Attitude is Everything Your attitude, positive or negative, will dictate how others perceive you and how you perceive yourself. © 2015 OnCourse Learning

24. Do whatever is necessary to: Put yourself in a positive environment. Surround yourself with successful people. Bring your positive attitude wherever you go. Ask yourself: – Can I handle my own inner fear of rejection? – Am I persistent?... a self-confident?... enthusiastic?... a problem solver?... adept at handling objections? © 2015 OnCourse Learning

25. 1.4 Goals If you’ve always wanted to be “somebody,” you can relax, you are “somebody.” Now get more specific in defining the person you would like to become. You, like most people, will have great difficulty becoming what you cannot define. Without a clear destination, any direction will do. © 2015 OnCourse Learning

26. Goals establish the baseline to measure your progress. You will need to examine your: – Personal motivation. – Finances. – Support group. © 2015 OnCourse Learning

27. Goals must be: Achievable – believe to achieve In writing Exact, not abstract © 2015 OnCourse Learning

28. Setting goals Short term - one to six months. Medium term - six months to a year. Long term - one to five years or longer. © 2015 OnCourse Learning

29. Specific time line for achievement. With accountability – tell someone you know Ask that person to question you often Short term – meet 3 FSBOs on Wednesday Drive every street on the north side of town Collect business cards from 25 businesses Med. Term – get GRI designation – Take two courses toward broker’s license. © 2015 OnCourse Learning

30. Long term goals Open your own firm in five years. Purchase one rental every five years. Obtain your broker’s license in three years. © 2015 OnCourse Learning

31. Plans – the “how” © 2015 OnCourse Learning Planning leads to efficient use of “time.” Plan your work and work your plan. Write it down Prioritize Focus Most important – first Evaluate Eliminate Continue

32. What is your time worth? © 2015 OnCourse Learning With roughly 2,000 working hours available in one year...  $40,000 annual income = $20.00/hour  $80,000 annual income = $40.00/hour  $120,000 annual income = $60.00/hour What is your time plus your knowledge worth? My time plus my knowledge* is worth $ ____________ / year, or $ __________/hour *more knowledge = more value

33. Value of client interaction time © 2015 OnCourse Learning With only one fifth of the average licensee’s time (400 hours) spent with a client – face to face, now what is your time worth?

34. To increase face to face client time © 2015 OnCourse Learning Maximize the hours available for client interaction by: Increasing: Calls Appointments Prospects you meet Referrals received Repeat business from established clients Plan your work and work your plan!

35. To maximize productivity – prioritize! © 2015 OnCourse Learning “A” time: time spent with decision makers “B” time: time spent prospecting for new clients “C” time: time spent seeing new listings and sales support “D” time: time spent on any non-work-related issues

36. 1.6 Real Estate “Business Plan” © 2015 OnCourse Learning With your broker/manager or mentor create your business plan to include marketing, financial and daily operational plans: Your own Sphere of Influence (SOI) list You know two to three hundred people Each of those know two to three hundred people Make a list of everyone you know A daily work plan for the first month First week in general First day in detail Second day plan done after first day Third day done at end of second day Etc.

37. 1.7 On Becoming a Professional © 2015 OnCourse Learning Office procedures manual Computer literacy Tax knowledge – enough to make professional referrals Equipment needed Daily plan Business cards Safe car Cell phone 100 foot tape or electronic measure Working flashlight Listing agreement Purchase agreement

38. About you Dress appropriately Be easy to be around. Take time to eat right, exercise and stay healthy © 2015 OnCourse Learning