hours

• 27 hours Basics of Commercial and Investment Real Estate
• 3 hours Current Issues in Washington Residential Real Estate Core 2010-2011

27 hours Basics of Commercial and Investment Real Estate Course Syllabus

Basic Differences Between C/I Real Estate and Personal Use Real Estate

Topics covered in this chapter include an introduction to commercial an investment real estate, a comparison of investment real estate with personal use real estate. There is also a discussion of the real estate market place and how real estate operates in an imperfect market. Learning objectives for the licensee include:

• Know the differences between commercial and investment real estate practice.
• Understand the nature of the commercial and investment real estate market.
• Explain the difference between a perfect market and how commercial and investment real estate works in an imperfect market

Basically, What does a C/I Real Estate Agent Do?

Topics covered in this chapter include an overview of the common agent activities found in the commercial and investment real estate market place. Leasing, brokerage, development and financing are covered. There is also a discussion of the necessity of an agent specializing in one of the brokerage activities within one of the four major product types. Learning objectives for the licensee include:

• Be able to explain the different activities in which a commercial and investment real estate agent may become involved.
• Know the characteristics of real estate investing.
• Identify what an investor is looking for in a real estate investment.

Four Basic Types of Properties Found in C/I Real Estate Practice

Topics covered in this chapter are the four major property types the broker or agent encounters in the practice of commercial and investment real estate: multi-family, office, retail and industrial. For each property type there is a discussion of the common property descriptions, ownership characteristics, and classifications within each property type. Included are references to various rating systems found in the industry. Learning objectives for the licensee include:

• Identify the major property type groups that make up the commercial and investment real estate industry.
• Know the different characteristics of the properties found in each major property group.

Basics of Demand for Investment Properties

Topics covered in this chapter include a general development cycle for commercial and investment real estate within a community, and a discussion of the factors that drive the demand for each of the four major property types: multi-family, office, retail and industrial. Various methods of how to determine a market area for a property are described along with a listing of items to include in a basic marketing brochure. Learning objectives for the licensee include:

• Learn what factors determine the demand for properties in each of the four major property types.
• Become familiar with common models used in the commercial and investment real estate market to quantify demand for the properties in each of the four major property types.
• Understand the effect of supply and demand on the commercial and investment real estate market.

Basics of Valuation in C/I Real Estate

Topics covered in this chapter are the difference between the term price and the term value, sources of value in for commercial and investment real estate, and the use of appraisals in commercial and investment real estate. Additionally, there is material on the three approaches to determining value used in commercial and investment real estate appraisals along with a discussion of the theory of highest and best use. Learning objectives for the licensee include:

• Identify the difference between the term price and value as found in the commercial and investment real estate market.
• Learn the common definitions used in the discussion of price and value found in the commercial and investment real estate market.
• Learn the components of an appraisal used in the commercial and investment real estate market.
• Understand the effect of supply and demand on the commercial and investment real estate market.

Investment Real Estate

Topics in this chapter include a discussion of investments in general and characteristics found in all investments. There is also an introduction to the cash flow model as applied to commercial and investment real estate. The acronym IDEAL in introduced as a way to explain the benefits of investing in commercial and investment real estate. Learning objectives for the licensee include:

• Recognize the common characteristics of all investments.
• Recognize which characteristics are most relevant in the commercial and investment real estate market.
• Identity what an investor is looking for in commercial and investment real estate.

User Real Estate Basics

Topics in this chapter include an introduction to the practice of user brokerage, a description of the legal interests present in commercial and investment real estate, and a listing of the roles an agent may perform in user brokerage. In addition, there is a listing and explanation of common terms used in the calculation of occupancy costs and an example of a typical cost calculations employed in user brokerage. Alternative lease analysis, lease vs. own analysis and sale leaseback analysis are addressed. Learning objectives for the licensee include:

• Learn how a user looks at commercial and investment real estate.
• Learn how users calculate their cost of occupancy in commercial and investment real estate.

Forms of Group Ownership in Commercial and Investment Real Estate

Topics include a discussion of the benefits of group ownership compared to individual ownership and the common legal entities encountered in the ownership of commercial and investment real estate including limited partnerships, limited liability companies (LLC). In addition there is a thorough discussion of federal securities laws and various exemptions available in commercial and investment real estate investment groups. Learning objectives for the licensee include:

• Define the different ownership forms found in the commercial and investment real estate marketplace.
• Learn the difference between a General Partnership and a Limited Partnership.
• Become familiar with use of Limited Liability Companies (LLCs) in commercial and investment real estate.
• Recognize when the security rules apply to commercial and investment real estate.

Basic Lease Clauses Used in C/I Real Estate

Topics in this chapter include an introduction to the lease in commercial and investment real estate and a thorough listing and discussion of common clauses found in commercial and investment real estate leases. The discussion of the commercial lease is important for both the user broker or agent and the investment broker or agent. Learning objectives for the licensee include:

• Learn the importance of the lease to the relationship between the landlord and the tenant in commercial and investment real estate.
• Be familiar with the common provisions found in a lease in commercial and investment real estate.

Basics of Financing C/I Real Estate

Topics to be covered in this chapter include an introduction to financing in commercial and investment real estate and the types of loans found in the marketplace. Lender rules of thumb, such as Loan to Value (LTV), Debt Coverage Ratio (DCR) and loan constant are covered and calculated. There is also discussion of the concept of financial leverage, including positive, negative and neutral leverage. Learning objectives for the licensee include:

• Define the types of loans available in the commercial and investment real estate marketplace.
• Learn common lender terminology that applies to commercial and investment real estate.
• Understand the concept of leverage.
• Be able to calculate the rules of thumb lenders use in the commercial and investment real estate marketplace.

Basic Financial Rules of Thumb Used in C/I Real Estate

Topics in the chapter include a discussion of the common rules of thumb found in the practice of commercial and investment real estate including cost per square foot, Gross Rent Multiplier (GRM), capitalization rate, and the cash on cash return. The strengths and weakness of each rule of thumb are discussed. Learning objectives for the licensee include:

• Learn the rules of thumb commonly used by investors in the commercial and investment real estate marketplace.
• Be able to calculate the rules of thumb commonly used by investors in the commercial and investment real estate marketplace.

Basic Cash Flow Analysis in C/I Real Estate

In this chapter we introduce three basic forms used to evaluate an investment in commercial and investment real estate. The Annual Property Income form, the Multi-Year Cash Flow form and the Sales Proceeds form are introduced and used by the student to complete a multi year before tax cash flow analysis of an investment property in the Emily Bridger Case Study. Learning objectives for the licensee include:

• Understand and use the Annual property Income form.
• Understand and use the Multi-year Cash Flow form.
• Understand and use the Sales Proceeds form
• Apply the three forms to an actual case study.

Basic Investment Case Study

In this case study the student will see the application of the principals taught throughout the course relating to the practice of investment brokerage in commercial real estate. Location analysis, demographic analysis and financial analysis are each applied to an apartment building investment. Learning objectives for the licensee include:

• Become familiar with the types of information being generated and used by practitioners and investors in the commercial and investment real estate market place.

Basic Lease Vs Own Case Study

In this case study the student will see the application of the principals taught throughout the course relating to the practice of user brokerage in commercial real estate. Location analysis, demographic analysis and financial analysis are each applied to the decision an existing tenant has to make regarding either continuing to lease or to purchase an industrial building. Learning objectives for the licensee include:

• Become familiar with the types of information being generated and used by practitioners and users in the commercial and investment real estate market place

Basic Retail Case Study

In this case study the student will see the application of the principals taught throughout the course relating to the practice of user brokerage in commercial real estate. Location analysis, demographic analysis and financial analysis are each applied to the decision made by a retail tenant regarding leasing a small space in an existing strip center. Learning objectives for the licensee include:

• Become familiar with the types of information being generated and used by practitioners, landlords and tenants in the commercial and investment real estate market place

Beyond the Basics

Topics in the chapter include the different levels of involvement in commercial and investment real estate, time value of money, taxation and sources of additional education. Learning objectives for the licensee include:

• Know the additional information needed to properly perform in the commercial and investment real estate market place.
• Learn some sources of advanced information about commercial and investment real estate.

3 hours Current Issues in Washington Residential Real Estate Core 2010-2011 Course Syllabus

Short Sales

Understand the:

• Operation of note and deed of trust executed by the seller at the time the seller received the loan and any short sale agreement offered by the lender
• Effect of a short sale, foreclosure and deed in lieu of foreclosure on the seller's credit rating
• Potential tax consequences of a short sale, foreclosure and deed in lieu of foreclosure
• Ability to effectively communicate with the lienholder(s) and loan servicing companies when representing sellers in a short sale.

Carbon Monoxide

Understand the:

• basics of Carbon Monoxide
• importance of keeping current with new legislation for both new construction and rental property installation

Labor and Industries Requirements

Understand:

• L and I requirements affecting real estate licensees and review the differences between real estate sales and property management
• the L and I requirements affecting designated brokers or real estate firms
• here to secure the current rates for real estate and property management business
• the benefits from L and I Insurance
• how to comply with the record keeping requirements of L and I
• where to get further information

Real Estate Licensing Law Relating to the Referral of Title Insurance Providers

Understand:

• the basics of a title insurance policy and who it is issued to.
• who to contact if a title company or licensee is in violation of the law regarding gifts.
• term "controlling interest" as it relates to licensees and title companies.

Home Inspector Referrals

Understand:

• the disclosures required with the new Jan 30, 2009 legislation regarding home inspection referrals
• the new requirements from the July 1, 2009 legislation
• the requirements of a brokerage for home inspector referrals
• what a familial and a business relationship in terms of home inspector referrals
• where to Find the Home Inspectors Standards of Practice Rules

Property Management and the Brokerage’s Policy

Understand:

• that real estate licensees cannot perform property management without approval from management.
• that property management is a real estate activity and that the designated broker has responsibility for property management activities performed by his or her licensee.
• the necessary agreements, record keeping and funds management procedures associated with property management as described by WAC-308-124D-215.