Real Estate Training Institute
2650 Beach Blvd. #35
Biloxi, MS 39531
Phone: (228) 354-8585
Email: information@msrealtycourses.com
Orientation to Mississippi Post Broker Course
Course Goal
The primary goal of this course is to substantiate for Broker Licensees those responsibilities of which they must be fully informed and aware when dealing in a business relationship with each other and the public.
About the Mississippi Post Broker Course
Upon passing the Mississippi brokerâs or salespersonâs examination and complying with all other conditions for licensure, a temporary license shall be issued to the applicant.
A temporary license shall be valid for a period of one (1) year following the first day of the month after its issuance.
All Mississippi residents who apply for and receive a nonresident Mississippi brokerâs or salespersonâs license shall be subject to the requirements, including temporary licensure and completion of a thirty-hour post-license course.
The holder of a temporary license shall not be issued a permanent license until he has satisfactorily completed a thirty-hour post-license course prescribed by the commission and offered by providers specifically certified by the commission to offer this mandated post-license education.
The holder of a temporary license shall complete the entire thirty-hour course within twelve (12) months of issuance of his temporary license; otherwise this temporary license shall automatically be placed on inactive status by the Mississippi Real Estate Commission.
If the holder of the temporary license does not complete the course and have his permanent license issued within one (1) year following the first day of the month after its issuance, the temporary license shall automatically expire and lapse.
A temporary license is not subject to renewal procedures and may not be renewed.
The thirty-hour post-license coursework shall be offered in no less than fifteen-hour increments of classroom instruction.
No more than eight (8) hours may be earned in a single day.
The holder of an active license who has satisfactorily completed the post-license course and whose permanent license has been issued shall not be subject to the sixteen-hour continuing education requirement in this chapter for the first renewal of his permanent license.
Course Availability
The online course is available 24 hours a day.
The course is a self-paced course.
Contact
Instructor:  Leslie Clauson, DREI, CDEIâ¨228-354-8585â¨information@msrealtycourses.com
Please allow the instructor 24 hours to respond.
Office Hours: Â 9AM to 4PM
DEADLINE FOR COMPLETION
This is a MREC mandatory course and is needed to be taken within twelve (12) months of issuance of a temporary license.
This course will last 3 months from the time of the first login.
If the requirements of this course are not completed within the time allowed, a temporary license shall automatically be placed on inactive status by the Mississippi Real Estate Commission.
If the holder of the temporary license does not complete the course and have his permanent license issued within one (1) year following the first day of the month after its issuance, the temporary license shall automatically expire and lapse.
COURSE POLICIES AND PROCEDURES
REGISTRATION POLICIES
Registrations are not confirmed without valid payment in full.â¨Payment may be made by credit card, charge card, certified check, cashierâs check or cash.â¨Registrations may be taken over the phone if a credit or charge card is used.
You will not receive your Certificate of Completion until all fees are paid in full.
REFUND POLICIES
Refunds will be issued only for cancellations received at least three business days prior to the start of the class, however a cancellation fee of $30.00 will be assessed.
ATTENDANCE
Mississippi Real Estate License Law requires that you complete 30 hours of instruction to receive a certificate of completion.â¨If your incomplete modules cause you to drop below the required 30 hours, you will be required to make up those hours.
Hours missed must be made up in the same topic missed.â¨Students are not allowed to sign-in or take the course for other students under any circumstances.â¨Hours are recorded.â¨All exams must be passed with a minimum grade of 75% before proceeding forward.
ASSESSMENT POLICIES
A pre-exam is taken by learners to make sure they are computer literate, have the equipment needed at hand and are self-determined to finish an online course.â¨Each module has a section exam.â¨At the end of the course there is no general final exam.â¨Students cannot proceed without obtaining a minimum of 75% pass rate.
CRITERIA FOR A SUCCESSFUL COMPLETION OF THE COURSE
Each lessonâs directions must be followed.â¨At the end of each module, students must pass an exam to be able to forward to the next module. (75% or higher)â¨Upon successful completion of all modules, a student will have earned the Certificate of Completion.â¨Each exam will be either multiple choices, true or false or open-ended questions.
COURSE PARTICIPATION
Students are required to keep in touch with the instructor or instructors. Communication may be in the form of facebook, messaging, phone, email or face to face. The time allotted for communication with your instructor is not counted toward your course.
INSTRUCTOR AND COURSE EVALUATIONS
You will be provided an instructor and course evaluation form. Prior to completing the course, please fill in the information required at the top of each form and evaluate the instructor. Â Certification of completion will not be issued until the evaluation is completed.
NOTIFICATION OF EXAM RESULTS
Students who pass the RETI exams will be notified with a Certificate of Completion within ten days after completion of the course.
CERTIFICATES OF COMPLETION (PLEASE READ CAREFULLY)
Upon passing the course, you will receive a Certificate of Completion. The student will receive an original certificate suitable for framing and a second copy that should be submitted to the Mississippi Real Estate Commission (MREC).
ABOUT YOUR INSTRUCTOR
LESLIE CLAUSON, CDEI, DREI
Real Estate Training Institute
2650 Beach Blvd. #35
Biloxi, Mississippi 39531
228-354-8585
information@msrealtycourses.com
Leslie has over 20 years of active real estate brokering. She specializes in apartment complexes and 1031 tax deferred exchanges. She began her career in Long Beach, California and planned to retire after successfully investing in residential income producing properties.
Instead, Leslie and her husband, Broker Jim Clauson purchased Real Estate Training Institute on the Gulf Coast of Mississippi in 2011. She has written and published four Mississippi specific real estate exam textbooks, four variations of pre-exam general information textbooks, and a book for the Tennessee exam. Leslie has had two 30-hour courses approved by ARELLO. In 2018, she connected the Myers-BriggsÂŽ theory of psychological types with her Continuing Education courses. Using her Myers BriggsÂŽ Practitioner License, she designed a certification series of real estate CE courses leading to the designation, âEXCEL Yourselfâ for real estate professionals.
508 COMPLIANCES
The Real Estate Training Institute has tried its best to make our website 508 compliant.  We have added several accessibility features to our website.
COMPUTER HARDWARE NEEDED FOR THIS COURSE
Please use: Internet Explorer 9+ and the latest versions of Firefox, Safari. and Chrome.â¨Our site will work on any operating system.
A high speed Internet connection with a connection speed of 1.5 MB/s or better is advised.â¨Speakers/Headphones and Microphone.
OPERATING SYSTEMS
MicrosoftÂŽ Windows 7 or higherâ¨AppleÂŽ MacOSx 10.9 or higher
MOBILE DEVICES
Students are required to have access to a PC or Mac but may use a mobile device such as a phone or tablet as a secondary means of access. Access to website functionality and required course materials may be limited on mobile devices.
FOR TECHNICAL ASSISTANCE
228-354-8585
information@msrealtycourses.com
CONTACT
Students can contact the school Monday through Friday
9:00 AM to 4:00 PM
There are two direct message systems available on the learnerâs course desktop. Â System on webpage communication is âContact Instructorâ the second is an instant MESSENGER to Facebook. Please give the instructor 24 hours to return the message.
SPEED OF READING:
Each module is timed. The amount of time is based on 150 words per minute.
OUTLINE POST BROKER COURSE
Real Estate Brokerage
1. WHY LEARN ABOUT . . . Real Estate Brokerage?
a. The History of Brokerage
b. Real Estate License Laws
c. Real Estate Brokerage
2. Independent contractor versus employee.
a. IRS Considerations
3. Commission
a. Procuring cause
b. Ready, willing and able buyer
c. Transactional broker
d. Sharing Commissions
4. Antitrust Laws
a. Price-Fixing
b. Group boycotting
c. Summary
5. Key Terms
a. Agency
b. Agency coupled with an interest
c. Agent
d. Antitrust laws
e. COALD
f. Commission
g. Cooperating broker
h. Dual agency
i. Employee
j. Estoppel
k. Express agreement
l. Fiduciary
m. Fraud
n. General agent
o. Implied agreement
p. Independent contractor
q. Law of agency
r. Listing agreement
s. Multiple listing
t. Principal
u. Procuring cause of sale
v. Puffing
w. Ratification
x. Special agent
y. Subagent
6. QUIZ
Managing Escrow Accounts
1. Establishing Escrow Accounts
a. Timely Deposit of Funds
b. Brokerâs Records
c. Transaction Failure
d. Summary
2. Excerpts Mississippi real estate license law and rules u0026amp; regulations
a. Earnest money deposits.
b. Rules u0026amp; Regulations,
c. License Law
I. Interest on Real Estate Brokersâ Escrow Accounts Act
II. Rule VIII, Time-Sharing, Paragraph D.
3. Quiz Financial Planning and Structuring Your Finances to Succeed
Financial Planning and Structuring Your Finances to Succeed
- Financial Planning and Structuring Your Finances to Succeed
a. Financial Plausibility
b. Insurance
c. Financial Arrangements
d. Financial and Closing Procedures
e. Two Reasons for a Good Accounting System
f. Balance Sheet
g. Expense versus Cost
h. Expenditures from Gross Revenue
i. Expenditures from Gross Revenue
j. Accrual versus Cash Basis Accounting
k. Avoiding Fraud
l. Budgetary Control
m. Steps in Preparing a Budget
n. Flexible Budget
o. Breakeven Point
p. Rules of Thumb for Breakeven
q. Types of Budgets
2. Licensed Real Estate Agents Taxes
a. Statutory Nonemployees
I. Why should I keep records?
II. Monitor the progress of your business
III. Prepare your financial statements
o Income statement
o Balance sheet
b. Identify sources of your income
c. Keep track of your deductible expenses
d. Keep track of your basis in property
e. Prepare your tax return
f. Support items reported on your tax returns
g. What kind of records should I keep?
h. Supporting Business Documents
I. Gross receipts
II. Purchases
III. Travel, Transportation, Entertainment, and Gift Expenses
IV. Assets V. Employment taxes
i. How long should I keep records?
I. Period of Limitations that apply to income tax returns
j. Are the records connected to property?
k. What should I do with my records for non-tax purposes?
l. How should I record my business transactions?
I. A journal
II. A ledger
III. Electronic Records
3. Filing u0026amp; Paying Taxes
a. Obtain Your Federal Business Tax ID
I. Who Needs an EIN?
II. How to Apply for an EIN
b. Determine Your Federal Tax Obligations
c. Find the Right Tax Form
d. Determine When the Tax Year Starts
I. Calendar Tax Year
II. Fiscal Tax Year
III. Short Tax Year
IV. Changing Your Tax Year
4. Borrowing Money for Your Business
a. Loans
I. SBA Loans
II. Veteran and Military Community Loans
b. Borrowing Money for Your Business
c. Types of Financing
I. Equity Financing
II. Debt Financing
d. Ability to Repay
e. Credit History
f. Equity Investment
g. Collateral
I. Collateral Coverage Ratio
h. Management Experience
i. Questions Your Lender Will Ask
5. QUIZ
Opening a Real Estate Office
1. 20 Questions Before Starting a Business
2. Write a Business Plan
a. Executive Summary
b. What to include in the Executive Summary?
c. Company Description
d. What to Include in the Marketing Analysis?
I. Information About Your Target Market
II. Distinguishing characteristics
III. Size of the primary target market
IV. How much market share can you gain?
V. Pricing and gross margin targets
VI. Competitive Analysis
VII. Regulatory Restrictions
3. Organization and Management
a. Organizational Structure
b. Ownership Information
c. Board of Directorsâ Qualifications
4. Service or Product Line
5. What to Include in your Service or Product Line
a. A Description of Your Product / Service
b. Details About Your Productâs Life Cycle
c. Intellectual Property
d. Research and Development (Ru0026amp;D) Activities
6. Marketing and Sales
a. Overall marketing strategy
b. A market penetration strategy.
c. A growth strategy.
d. Channels of distribution strategy.
e. Communication strategy.
f. Overall sales strategy
I. A sales force strategy.
II. Your sales activities.
7. Funding Request
8. Financial Projections
a.. Financial Projections
b. Historical Financial Data
c. Prospective Financial Data
9. Appendix
10. How to make Your Business Plan Stand Out
a. Be Clear About What You Have to Offer
b. Donât Become a Jack of All Trades-Learn to Strategize
c. Identify Your Niche
11. Choose Your Business Structure
a. Sole Proprietorship
I. Forming a Sole Proprietorship
II. Sole Proprietor Taxes
III. Advantages of a Sole Proprietorship
IV. Disadvantages of a Sole Proprietorship
b. Limited Liability Company
I. Forming an LLC
II. LLC Tax Obligations
III. Advantages of an LLC
IV. Disadvantages of an LLC
V. Combining the Benefits of an LLC with an S Corporation
c. Corporation
I. Forming a Corporation
II. Corporation Taxes
III. Advantages of a Corporation
IV. Disadvantages of a Corporation
d. Partnership
I. Types of Partnerships
o General Partnerships
o Limited Partnerships
o Joint Ventures
II. Forming a Partnership
III. Partnership Taxes
IV. Advantages of a Partnership
V. Disadvantages of a Partnership
e. S Corporation
I. Forming an S Corporation
f. Combining the Benefits of an LLC with an S Corp
I. Taxes
II. Advantages of an S Corporation
III. Disadvantages of an S Corporation
g. Cooperative
I. Forming a Cooperative
II. Cooperative Taxes
III. Advantages of a Cooperative
IV. Disadvantages of a Cooperative
12. Choose Your Business Name
a. Factors to Consider When Naming Your Business
b. If You Intend to Incorporate
c. Pick a Name That is Web-Ready
d. Claim Your Social Media Identity
e. Register Your New Business Name
f. Apply for Trademark Protection
13. Register Your Business Name
a. What is a âDoing Business Asâ Name?
b. Do I Need a âDoing Business Asâ Name?
c. How to Register your âDoing Business Asâ Name
d. Register with State Agencies
14. Choose Your Business Location and Equipment
a. Tips for Choosing Your Business Location
I. Determine Your Needs
II. Evaluate Your Finances
III. Is the Area Business Friendly?
IV. The Bottom Line
15. Basic Zoning Laws
a. Finding out How Property is Zoned
b. Home Based Business Zoning Laws
I. Restrictions on Physical Changes to the Appearance of Your Home
II. Traffic Restrictions
III. External Effects or Nuisances
16. Leasing Commercial Space
a. Lease Agreement
b. Expenses
c. Maintenance and Repair
d. Read the Lease
e. Protect Your Business
f. What if You Default?
17. Leasing Business Equipment
a. Benefits of Leasing Business Equipment
b. Factors to Consider When Leasing Equipment
18. Startup Cost Tax Deductions â How to write off the expenses of starting your business.
a. What Are Deductible Startup Costs?
b. Other Startup Deductibles â Organization Costs
c. What is considered the Startup Phase?
d. How to Claim the Deduction
e. Keep Good Records!
f. Talk to Your Accountant before Startup Expense Deduction
19. A Consumerâs Guide to Buying a Franchise
a. The Franchise Business Model
I. Costs
II. Initial Franchise Fee and Other Expenses
III. Continuing Royalty Payments
IV. Advertising Fees
V. Fran Site Approval
VI. Franchisor Controls
VII. Design or Appearance Standards
VIII. Restrictions on Goods and Services You Sell
IX. Restrictions on Method of Operation
X. Restrictions on Sales Area
XI. Contractual Obligations
XII. Terminations
XIII. Renewals
b. Is a Franchise Right for You
I. Your Investment
II. Your Abilities
III. Your Goals
c. Finding the Right Opportunity
I. Local Outlets II. Franchise Handbook
III. Franchise Exposition
IV. Franchise Broker
d. Selecting a Franchise
I. Demand
II. Competition
III. Your Ability to Operate the Business
IV. Name Recognition
V. Complaints About the Franchise
VI. Training and Support Services
VII. Franchisorâs Experience
VIII. Growth
e. The Franchise Disclosure Document
I. Franchisorâs Background
II. Business Background
III. Litigation History
IV. Bankruptcy
V. Initial and Ongoing Costs
VI. Supplier, Territory and Customer Restrictions
VII. Franchisorâs Advertising and Training
VIII. Renewal, Termination, Transfer and Dispute Resolution
IX. Financial Performance Representations
X. Franchisee and Franchise System Information
XI. Financial Statements
f. Evaluating Potential Earnings
I. Is the Earnings Claim Typical for a Franchise in this System?
II. Average Income
III. Gross Sales IV. Net Profits V. Geographic Relevance
VI. Franchiseesâ Backgrounds
VII. Reliance on Earnings Claims
g. Before You sign the Franchise Agreement
I. Accountants and Lawyers
II. Banks and Other Financial Institutions
III. Better Business Bureau
IV. Government
V. The FTC
20. Build Your Own Franchise
a. Is Franchising for You?
21. REVIEW: Opening a Real Estate Office
a. Developing a Realistic Business Plan
c. Capital and Start-Up Costs
c. Initial Startup Costs
I. Attorney and account fees.
II. Office setup and occupancy.
III. Office equipment and furniture.
IV. Signs and lock boxes.
V. National Association of REALTORS (NAR), Board of REALTORSÂŽ, and Multiple Listing ServiceÂŽ (MLS) fees.
VI. Office supplies.
VII. Advertising, direct mail and a grand opening.
4. Estimating Income and Expenses
a. Factors to Consider When Projecting Income
b. Scope of company operations.
c. Market conditions.
d. Number and projected productivity of sales associates.
e. Income sources.
f. Factors to Consider When Projecting Operating Expenses
g. Size of the brokerâs office.
h. Scope of operations.
i. Marketing methods.
j. Market conditions.
k. Agent/employee compensation.
5. Fixed Expenses
a. Occupancy costs.
b. Payroll costs.
c. Equipment costs and maintenance.
d. Furniture rental. V. Liability insurance.
e. Property insurance.
6. Variable Expenses
a. Commissions.
b. Advertising.
c. Institutional advertising
d. MLS listing fees.
e. Telephone.
f. Office supplies gI. Printing.
7. SAMPLE START-UP COST WORKSHEET
8. ESTIMATED MONTHLY EXPENSES WORKSHEET
9. FRANCHISE VS. INDEPENDENT FIRM
a. Â Advantages of Purchasing a Franchise
b. Advantages of Remaining an Independent Broker
c. TAX CONSIDERATIONS
10. Staff and Sales Personal
11. Support Staff
a. Receptionist/secretary
b. Bookkeeper.
c. Support staff.
d. Transaction coordinators
12. Real Estate Sales Personal
a. Full Time
b. Part Time
c. Sales Manager
13. Recruitment and Selection
a. Set recruiting goals
b. Sources for new salespersons.
c. Advertising for new salespersons.
d. Career nights.
e. Prelicensing schools.
f. Other real estate firms.
g. Personal contacts.
h. Personal referrals from salespersons.
14. Application Process
a. Equal employment opportunity laws.
b. Application forms.
c. Interview procedures.
d. Verifying license status.
e. Checking references.
15. Employment Agreements
a. Tax considerations.
b. Non-compete clauses.
c. Hours and working conditions.
d. Written acceptance of company policies.
16. Compensation to Licensees
a. Straight salary.
b. Fixed percentage commission split.
c. Commission with bonus.
d. Graduated commission.
e. 100 percent commission.
17. Commission Reductions
a. Franchise fees.
b. Sign fees.
c. Other fees.
18. Training Salespeople
a. Company policies and procedures.
b. Technical skills.
c. Listing skills.
d. Selling skills.
19. Policy and Procedures Manual
a. Statement of companyâs objectives.
b. Define the companyâs function.
20. Sales Manager Responsibilities
a. Supervision and control of sales staff.
b. Sales meetings.
21. Summary
22. Quiz
MODULE: OWNING, MANAGING AND SUPERVISING A REAL ESTATE OFFICE
1. Business Expenses
2. Capital Expenses
3. Deducting Business Expenses
a. Personal Versus Business Expenses
b. Home Office Deduction
c. Travel, Meals, Entertainment and Gifts
d. Business Use of Your Car
4. Other Types of Deductions
a. Employeesâ Pay
b. Interest
c. Retirement Plans
d. Rent Expense
e. Taxes f. Insurance
g. Business-Related Education
5. Deducting Capital Expenses
a. Depreciation
b. What property can be depreciated?
c. Repairs
d. Depreciation Method
e. Section 179 Deduction
f. Listed Property g. Form 4562
h. Amortization
6. Running a Business
a. Managing Your Business Credit
I. D-U-N-SÂŽ number
II. Monitor your business credit file and keep it up to date.
III. Establish a business credit history. Pay bills on time â and understand other factors that influence your credit rating.
IV. Monitor your customersâ and vendorsâ credit.
7. Why small businesses should manage their business credit
a. Securing more financing at better terms.
b. Ensuring you get needed supplies at affordable terms.
c. Making smarter credit decisions on your customers.
d. Protecting yourself against business identity theft.
8. Size Standards 9. Making Decisions
a. Tips for Wise Decision-Making
10. Common Decision-Making Mistakes
11. Making Time
12. Marketing
a. Conducting Market Research
b. Creating a Marketing Strategy
c. Target Marketing
d. Managing the Market Mix
I. Products and Services
II. Promotion
III. Price
IV. Distribution
13. Marketing 201
a. How Can I Make My Customer Happy While Still Staying True to My Business?
I. Define a target market.
II. Discover what products customers in your target market want to buy.
III. Set a price for these products.
IV. Advertise your product to your customers.
V. Make your product available to your customers.
b. What Activities Are Included in Marketing?
c. How Can I Incorporate Marketing into My Company?
d. General Ideas
14. Advertising: The Basics
a. What Advertising Can Do for Your Business
b. What Advertising Cannot Do for Your Business
c. Two Important Virtues of Advertising
d. Two Drawbacks of Advertising
e. Getting Ready to Advertise
I. Design the Framework
II. Fill in the Details
III. Arm Yourself with Information
IV. Build Your Action Plan â Evaluating Media Choices
V. Using Other Promotional Avenues
VI. The Advertising Campaign
VII. Comparing Advertising and Public Relations
15. Email Marketing
16. Why You Should Establish a Web Presence
17. QUIZ
Office Policies and Procedures Including Agency Office Policies
- BUSINESS POLICIES AND PROCEDURES
a. Ethical Company Policies
b. Formulating Business Philosophy/Policies/Procedures?
I. Responsibility Overview
II. Business Ethics
III. The Heart of Ethics
IV. Code of Ethics
V. Institutionalizing Ethics
o Commit your ethics to writing.
o Communicate Your Code of Ethics
o Get Actively Involved
o Enforce Code of Ethics
o Reinforce Code of Ethics
2. POLICIES AND PROCEDURES
a. General Business Policies
I. Agency
II. Antitrust
III. Equal Opportunity in Housing
IV. Real Estate Laws and Regulations
V. General Policies for all Workers
VI. Procedures for Independent Contractors/Salespeople
VII. Employee Personnel Policies
VIII. Conclusion
3. CREATING OFFICE POLICIES ON AGENCY
a. Standard of Practice 9-10(a)
b. Standard of Practice 9-10(b)
c. Review the different alternatives available in the marketplace
I. Seller Agency Exclusively
II. Buyer Agency Exclusively
III. Seller and Buyer Agency w/ Disclosed Dual Agency for in-house Sales
IV. Single Agency
d. Review the Pros/Cons of each alternative
I. Seller Agency Exclusively Advantages/Disadvantages
II. Buyer Agency Exclusively Advantages/Disadvantages
III. Seller and Buyer Agency w/ Disclosed Dual Agency for in-house Sales Advantages/Disadvantages
IV. Single Agency Listing or Seller Advantages/Disadvantages
V. Draft the Company Policy VI. Conclusion
4. QUIZ
Intra/inter Office Confidentiality
1. The Exit Agreement
a. What Does This Cover?
I. Client Lists II. Market Research
III. Forms
IV. Documents
V. Financial Analysis
VI. Strategic Plans
2. Deciding When the Duty of Confidentiality Begins
3. Intra-Office Confidentiality
4. Inter-Office Confidentiality
5. Legal protections for trade secrets fall roughly into three categories:
a. Covenants not to compete
b. Contractual limitations
c. The client list: who owns it?
d. Here are some ways brokers can protect proprietary information, but they should always obtain legal advice.
6. Protecting Your Customerâs Privacy
a. Overview of Privacy Laws
b. Identity Theft â Business Ownerâs Responsibilities
c. Using Consumer Credit Reports
d. What Are Identity Theft and Identity Fraud?
e. What are the Most Common Ways That Identity Theft or Fraud can happen to you?
f. Whatâs the Department of Justice Doing About Identity Theft and Fraud?
7. QUIZ
Broker Agreements with Licensees and Assistants
1. THE BROKER/AGENT AGREEMENTS u0026amp; RELATIONSHIPS
a. Written Instruments Between Broker u0026amp; Salesperson
I. MUTUAL RESPONSIBILITIES MUST BE CLEARLY SPELLED OUT
II. COMPANY SIZE
2. CONTRACTS AND AGREEMENTS
a. Types of Independent Contractors.
b. Training c. Hours of Work
d. Priority of Assignments
e. Company Identification
f. License Fees and Dues
g. Expenses h. Fringe Benefits
3. Determining the Proper Relationship
4. Establishing the Relationship
a. Drafting the Agreement with the Salesperson
b. Monitoring Adherence to the Agreement
c. Periodic Review of Terms of Agreement
d. Review of Plans, Policies, Forms and Procedures
e. Review of Salespersonâs Representation to the Public
5. Summary and Conclusion
6. QUIZ
Human Resources
1. STAFFING NEEDS
2. Staff Positions
a. Receptionists and secretaries
b. Transaction coordinators
c. Department managers and employees.
d. Personal Assistants
e. Salespeople
I. Financial implications
II. Ability to manage the sales staff
III. Profile of the salespeople
IV. Size of the available pool of talent
f. Full-time salespeople.
g. Part-time salespeople.
h. License referral companies.
i. New licensees.
j. Experienced salespeople.
3. EMPLOYMENT LAWS
a. Equal Employment Practices
4. RECRUITING SALESPEOPLE
a. Recruiting Brochures
b. Recruiting Experienced Talent
c. Recruit a manager.
d. Network the industry.
e. Mobilize ambassadors.
f. Recruiting Unlicensed Talent
g. Advertising
h. Career Seminars
i. Licensing Courses
j. Sponsorship
k. Trial Training Sessions
l. Scholarships
m. Direct Mail
5. SELECTING SALESPEOPLE
a. Prescreening
b. Application.
c. Preliminary interview.
d. Formal Interview
e. Prepare the interview.
I. An introduction
II. A review of work experience
III. A review of education
IV. A review of present activities
V. A summary
VI. A closing
6. Conduct an Interview Federal Taxes Affecting Real Estate
a. Ownership and Use Tests
b. Gain
c. Loss
d. Worksheets
e. Reporting the Sale
f. More Than One Home
7. Business Use or Rental of Home Real Estate (Taxes, Mortgage Interest, Points, Other Property Expenses)
a. Question
b. Answer Rental Income and Expenses â Real Estate Tax
8. When to Report Income
a. Advance Rent
b. Example
c. Security Deposits
d. Expenses Paid by Tenant
e. Example One
f. Example Two
g. Property or Services in Lieu of Rent
h. Example
i. Personal Use of Vacation Home or Dwelling Unit
j. Publication 527
9. When To Report
a. Cash method
b. Accrual method
10. Types of Income
a. Advance rent
b. Property or services
c. Security deposits
d. Other Sources of Rental Income
e. Lease with option to buy
f. Part interest
g. Rental of property also used as your home
11. Rental Expenses
a. Personal use of rental property
b. Part interest
c. Example
12. Types of Expenses
a. Depreciation
b. Insurance premiums paid in advance
c. Interest expense
d. Expenses paid to obtain a mortgage
e. Form 1098, Mortgage Interest Statement
f. Legal and other professional fees
g. Local benefit taxes
h. Local transportation expenses
i. Pre-rental expenses
j. Rental of equipment
k. Rental of property
l. Travel expenses
m. Uncollected rent
n. Vacant rental property
o. Vacant while listed for sale
p. Vacant while listed for sale
q. Loan or mortgage ends
r. Points when loan refinance is more than the previous outstanding balance
I. Example
6. Repairs and Improvements
a. Improvements
b. Betterments
c. Restoration
d. Adaptation Installment Sales
7. General Rules Passive Activity Losses
a.. There Are Two Kinds of Passive Activities:
I. Passive:
II. No passive
b. Passive Activities
c. Non passive Activities
d. Income from Self-Rented Property Rehabilitation Tax Credit
1. Reminders for Claiming the Rehabilitation Tax Credit
Form 3468
2. Who must file
3. Property or Source of Credit
4. Date of Certification of Completed Work
5. Carryback or Carry forward
6. Recent Advice on the rehabilitation tax credit:
a. Income Inclusion Amount under Section 50(d)(5)
b. Form 4255 and Section 47 Rehabilitation Credits
c. Form 3468 and Section 47 Rehabilitation Credits
7. Safe Harbor
a. The Internal Revenue Service issued Revenue Procedure 2014-12 w
8. Tax Exempt Use Property
9. Alternative Minimum Tax
10. Place of Filing Notice Like-Kind Exchanges Under IRC Code Section 1031
a. Restrictions
b. Form 8824
11. QUIZ
Financing Real Estate
1. Financing Real Estate
a. Promissory Note
b. Mortgage
I. Mortgagor
II. Mortgagee
III. Acceleration clause
IV. Prepayment clause
V. Due-on-sale clause
c. Mortgage theory
I. Title theory
II. Lien theory
2. Rights of Mortgage Lenders
a. Right to foreclose
b. Right to transfer
3. CONVENTIONAL, FHA AND VA MORTGAGE LOANS
a. CONVENTIONAL MORTGAGE LOANS
I. Assumption of conventional mortgages
II. Private mortgage insurance (PMI)
4. GOVERNMENT, INSURED OR GUARANTEED MORTGAGE LOANS
a. FHA-insured mortgage loans
I. Mortgage insurance premium (MIP)
II. FHA 203(b) residential loan.
5. DEPARTMENT OF VETERANS AFFAIRS (VA) LOAN
a. Eligibility and loan guarantee entitlement
b. VA Loan Eligibility
c. Interest rates.
d. Certificate of reasonable value (CRV)
e. Closing costs and VA funding fee
f. Funding fee
g. Assumption and release of liability
6. RURAL HOUSING SERVICES ADMINISTRATION
a. Term mortgages.
b. Partially amortized mortgages.
c. Balloon payment
d. Fully amortized mortgages
7. MORTGAGES BY PAYMENT OF YIELD VARIABILITY
a. Adjustable-rate mortgage (ARM).
b. Index
c. (Annual caps) d. (Lifetime caps)
e. FHA ARMs
8. Graduated-payment mortgage (GPM).
a. 15-year mortgage
9. Buy downs
10. MORTGAGES BY PURPOSE
a. Purchase-money mortgage.
b. Participation mortgage.
c. Blanket mortgage.
d. Reverse annuity mortgage.
e. Package mortgage.
f. Home equity loan.
11. CONFORMING vs. NONCONFORMING LOANS
a. Conforming loans
I. Fannie Mae
II. Fannie Mae
b. Nonconforming loans
12. OTHER TECHNIQUES USED IN FINANCING REAL ESTATE
13. TIME SHARING
14. CONTRACT FOR DEED
15. SALE AND LEASEBACK
16. FEDERAL CONSUMER PROTECTION LEGISLATION
17. EQUAL CREDIT OPPORTUNITY ACT (ECOA)
18. TRUTH-IN-LENDING ACT AND REGULATION Z
19. WHEN THE APR DISCLOSURE DOESNâT TELL THE WHOLE STORY
20. RESPA REQUIREMENTS (REAL ESTATE SETTLEMENT PROCEDURES ACT)
a. Disclosures at the time of loan application
b. âSettlement Costs and You,
c. Good faith estimate (GFE)
d. Limits on escrow accounts.
21. RESIDENTIAL LOAN UNDERWRITING
a. INITIAL INTERVIEW b. LOAN APPLICATION
c. Prequalification
d. Credit history
22. ITEMS TO BRING TO A MORTGAGE APPLICATION APPOINTMENT APPLICATION
a. Adequacy of net worth.
b. Verifying and analyzing the income
c. Income/expense ratios.
23. PROPERTY ANALYSIS
a. Appraisal.
b. Title examination.
c. Survey.
24. LOAN ANALYSIS
a. Interest rate and discount points.
b. Loan term.
c. Availability of mortgage insurance.
d. Loan fees and calculations.
e. Underwriting decision and loan commitment.
I. Conditional commitment
II. Firm commitment
f. Automated underwriting.
g. Summary
25. Nearly half of mortgage borrowers donât shop around when they buy a home.
a. Often fail to shop:
b. Apply to only one lender or broker:
c. Rely on information from people with something to sell:
d. Shop more if they know more:
e. Guide to loan options:
f. Tool to see what interest rates are offered to people in your situation:
g. Guide to closing documents
h. Closing checklist Buying a Home
1. Prepare to shop
i. Check your credit
j. Gather your personal and financial information.
k. Make sure your documents are accurate and complete
h. Chances are youâll need to update your loan application packet at least once during this process.
i. Be proactive and responsive to your lender.
j. A good lender is a thorough lender.
k. Expect to work with multiple people associated with your lender.
26. If you receive regular income from a non-employment source, be prepared to submit additional documentation
27. If you have made one or more large deposits into your bank account recently, be prepared to document the source of the money.
28. HOW TO AVOID PITFALLS
a. Donât submit incomplete documents.
b. Shop for title and other closing services
c. Review your Loan Estimates
d. Compare your Loan Estimates
e. Find out how you will receive your Closing Disclosure.
f. Review documents before closing
g. Find your most recent Loan Estimate from your paperwork file.
h. Request a copy of your other closing documents in advance.
29. Loan term
a. 30 YEARS
b. 15 YEARS
c. OTHER
30. Interest rate type
a. CONVENTIONAL, FHA, OR SPECIAL PROGRAMS
31. Making the mortgage process easier Fraud Schemes and their Characteristics
32. Straw Buyer Characteristics
33. Air Loan Characteristics
34. Double Sale Characteristics
35. Property Flip Characteristics
36. Ponzi / Investment Club / Chunking Characteristics
37. Builder Bailout / Excessive Sales Incentive Characteristics
38. Buy and Bail Characteristics
39. Foreclosure Rescue Characteristics
40. Short Sale Fraud Characteristics
41. Unauthorized Fees and/or Payouts Characteristics
42. Non-Armâs Length Short Sale Characteristics
43. Short Sale Flip Characteristics
44. Short Sale Flip: Title Issues âTransfer to Business, LLC or Trust
a. Short Sale Loan:
b. End Purchase Loan:
45. Short Sale Flip: Bait-and-Switch with âDecoy HUD-1â
46. Reverse Mortgage Fraud Characteristics
47. Affinity Fraud Characteristics Mortgage Fraud Red Flags
a. High-level Red Flags
48. Mortgage Application
q. Sales Contract
b. Credit Report
c. Employment and Income Documentation
d. Asset Documentation
e. Appraisal
49. Title
50. Owner Occupancy
a. Purchase Transactions
b. Refinance Transactions
FHA Loan Products
1. Freddie Mac Loans Mortgage Resale Restrictions Financing Assistance Programs
a. HUDâs Neighborhood Stabilization Program (NSP) HomeReadyÂŽ Mortgage
2. Introducing HomeReadyÂŽ Mortgage
3. Homeownership Education Requirement Community SecondsÂŽ
4. Eligibility Property Assessed Clean Energy (PACE)
a. Concerns
I. Buyers
5. Sellers HomeStyle EnergyÂŽ Loans
6. Eligible Property and Occupancy Types
a. Energy Report Requirements
b. Exceptions to Energy Report Requirement
c. Product Eligibility
d. Purchase Transactions HomeStyleÂŽ Renovation Mortgage Construction-to-Permanent Financing
8. Overview
9. Construction Phase Manufactured Housing (MH)
Quiz
Mississippi Real Estate Commission Mandated Forms
1. Branch Office License Application
2. Broker Transfer Application
3. Reactivation of Broker Application
4. Business Change of Address Form
5. Certification of Licensure Request Form
6. Cooperating Agreement
7. Application for Brokerage Firm
8. Dual Agency Confirmation
9. Inactive Status Address Form
10. Non-Resident or Reciprocal Broker License Application
11. Non-Resident or Reciprocal Salesperson License Application
12. Informational Statement for Mississippi Property Condition (PCDS)
13. Resident Broker License Application
14. Resident Salesperson License Application
15. Reactivation of Salesperson Application
16. Sworn Statement/Complaint Form 1
7. Working With a Real Estate Broker Form
18. QUIZ
