12-Hour Broker Correspondence Renewal ... - McKissock Learning

12-Hour Broker Correspondence Renewal Package with NAR Ethics

McKissock Sponsor Code: CE10600460/CE10500067

License Renewal Information

Brokers are required to complete 12 hours of CE every year from July 1st to June 30th for a total of 36 hours at time of renewal. Licensees who hold a managing broker designation, including managing broker eligibility, are required to complete at least 4 of the 12 hours in an approved managing broker course. Brokers initially licensed on or after June 30, 2014, are required to complete 30 hours of approved postlicensing education during the first 2 years after the license was issued. Brokers are not required to obtain continuing education until the third continuing education year after the broker is initially licensed. Please note the courses within are not postlicensing education.

How to complete your continuing education

Read and study the enclosed courses. When you have finished studying the enclosed courses, purchase the 12-Hour Broker Correspondence Renewal Package with NAR Ethics by clicking here. After your purchase the courses will be added to your dashboard. Click "Take Test" and follow the instructions to access the final exam. When the final exam is completed, you will be able to print your certificate. You'll need to repeat this process for each course in the package to get credit for each course.

Click here to purchase the 12-Hour Broker Correspondence Renewal Package with NAR Ethics.

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McKissock Sponsor Code: CE10600460/CE10500067

Table of Contents

How to Work with Real Estate Investors - Part 1 [3 contact hours]............................................ Page 1 If you've ever thought about increasing your business by working with investor clients this course is for you! Whether the property is a small rental house or a big shopping center, there are specific skillsets, terminology and experience required to give these types of clients the reasonable skill and care that is to be expected of a real estate agent. Your instructor, Tom Lundstedt, CCIM will guide you through the process of evaluating an investment property. You will learn how to use an Investment Property Worksheet to calculate the cash flow, income tax savings, depreciation and rate of return for a rental property. In addition the instructor will coach you through a real world case study that involves assisting an investor who is interested in purchasing an investment property. The process will be simple and fun! The worksheet and information presented in this course will serve you throughout your entire real estate career.

Going Green: Elements of an Eco-Friendly Home [3 contact hours]...................................... Page 20 In recent years, green building has become more than just a trend. Nearly 40% of home buyers consider energy efficient features to be "very important". This is not simply because home buyers wish to reduce their environmental footprint. The cost of sustainable materials and products is low, making green building one of the most cost-effective types of construction. Therefore, knowledge of the green building market segment will allow you a competitive advantage in the real estate industry.

Lead Alert: A Guide for Property Managers [3 contact hours]............................................... Page 44 This course describes some of the most important aspects of the element lead, one of the oldest known elements on earth. It begins with a brief history of lead, including historical and modern uses. A discussion follows of the most common sources for lead contamination both inside the home as well as outside the home.

NAR: May the Code Be With You [3 contact hours]................................................................ Page 60 This continuing education course addresses the specifics of the National Association of REALTORS? Code of Ethics and ethical practices and decision making for real estate professionals. Additionally, this course may potentially be approvable for REALTORS? who wish to fulfill Code of Ethics requirement from the National Association of REALTORS?. Check with your local REALTORS? association.

NAR Ethics Cycle 6 deadline is extended to 12/31/2021. This course meets the REALTORS? Code of Ethics Training Requirement and will be accepted by associations within MI, IN and WI, per NAR policy. McKissock is partnered with Southeastern Border Association of Realtors (MI).

Click here to purchase the 12-Hour Broker Correspondence Renewal Package with NAR Ethics.

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How to Work with Real Estate Investors - Part 1

(Elective) - 3 CE Credit Hours

If you've ever thought about increasing your business by working with investor clients this course is for you! Whether the property is a small rental house or a big shopping center, there are specific skillsets, terminology and experience required to give these types of clients the reasonable skill and care that is to be expected of a real estate agent. Your instructor, Tom Lundstedt, CCIM will guide you through the process of evaluating an investment property. You will learn how to use an Investment Property Worksheet to calculate the cash flow, income tax savings, depreciation and rate of return for a rental property. In addition the instructor will coach you through a real world case study that involves assisting an investor who is interested in purchasing an investment property. The process will be simple and fun! The worksheet and information presented in this course will serve you throughout your entire real estate career

Chapters:

? Chapter One: Why Invest in Real Estate? ? Chapter Two: Buying a "Money Machine" ? Chapter Three: Case Study - Uncle Louie ? Chapter Four: Case Study - Rental House ? Chapter Five: Pay All Cash for the Rental House ? Chapter Six: Depreciation ? Chapter Seven: Return on Equity ? Chapter Eight: Frequently Asked Questions

Learning Objectives:

? Communicate effectively with investor clients. ? Recognize the importance of using professional advisors (attorneys, accountants, and so on). ? Define the four financial benefits of an investment property. ? Calculate cash flow before tax. ? Calculate principal reduction. ? Determine the effect of depreciation on taxable income. ? Combine the four financial benefits to determine rate of return. ? Explain the ramifications and methods of depreciation. ? Calculate annual return on equity. ? Explain the difference between appreciation and inflation.

Customer Testimonial

"Great experience, IT WILL INCREASE MY INCOME THIS YEAR. I already sell a lot of real estate and now I will sell more." ~ Steven M.

How to Work with Real Estate Investors - Part 1

Page 1

Course Introduction

Meet Your Instructor

Thank you for joining us for McKissock's course titled, "How to Work with Real Estate Investors - Part 1."

Suggestion for Navigating This Course

Your instructor is Tom Lundstedt, who has entertained and enlightened audiences throughout the United States on this important and profitable subject.

Throughout this course, you will see QR codes (Quick Response Codes) that will allow you to view additional material on your smart phone. These codes give you access to videos that transform this course into a multimedia presentation. If you prefer to read the text, you can ignore the QR codes. If you feel that you will learn best by watching the videos, all you need is a QR code reading app on your smart phone.

This course also comes with a worksheet that will not only help you in taking this course, but will also provide you with a valuable tool that you can use with your investor clients.

There is a copy of this worksheet in this book. You can also get a digital copy of this worksheet (and the Course Materials) by either scanning this QR code (check your phone's downloads after scanning) or by entering this URL into your web browser: .

? Tom has first-hand experience in the world of investment real estate, as an investor, broker, trainer, sales manager and speaker.

? In recognition of his expertise The National Association of REALTORS? has awarded Tom the prestigious CCIM designation which stands for Certified Commercial Investment Member.

? Additionally, he has a degree in Business from the University of Minnesota.

? Prior to entering the world of real estate, Tom was a Major League Baseball player for the Chicago Cubs and Minnesota Twins.

We're confident you'll find this program enjoyable and informative.

Course Objectives

Upon completion of this course, you will be able to:

PLEASE NOTE: For the best convenience, we suggest that you print off a copy of the Course Materials as you take the course. If you do not have access to a printer, the worksheet in this book will do the trick.

? Communicate effectively with investor clients. ? Recognize the importance of using professional advisors (attorneys,

accountants, and so on). ? Define the four financial benefits of an investment property. ? Calculate cash flow before tax. ? Calculate principal reduction. ? Determine the effect of depreciation on taxable income. ? Combine the four financial benefits to determine rate of return. ? Explain the ramifications and methods of depreciation. ? Calculate annual return on equity. ? Explain the difference between appreciation and inflation.

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How to Work with Real Estate Investors - Part 1

Introduction

"Never count on making a good sale." - Warren Buffet

That's a quote from Warren Buffet, one of the most successful investors of all time. It's great advice not only for people who invest in the stock market, but also for people who invest in real estate. The point is you have to buy right. You have to know what you're doing. You can't just buy an investment property and hope it will go up in value by the time you sell. The strategy should be to buy a property that makes good business sense from the beginning. If it does go up in value over time, that's great! But, even if it doesn't go up in value, it's still a good business.

Here's a key point: our focus in this course is on real estate investors not real estate speculators. There's a huge difference! Wise investors know they're buying a business when they acquire a rental property. It has to be analyzed prior to the purchase and must make financial sense. A speculator often buys a property without analyzing the numbers (or even knowing how to analyze the numbers) and hopes it'll increase in value in the future. That's asking for trouble!

Chapter One:

Why Invest in Real Estate?

Answer: To make money! That's true, but there are a lot of different investments where you can make money: stocks, bonds precious metals, certificates of deposit and good old savings accounts, to name a few.

Real estate investing is such an exciting topic. But it's also misunderstood. Many real estate agents don't feel confident when dealing with investors. That's a shame. They're missing out on a huge percentage of potential transactions.

You, however, are taking a big step forward by taking this course. Besides completing hours of continuing education (which is very important), this course will help you provide top quality service to your investor clients.

Disclaimer

Now, before we go any further, I've got to put in a disclaimer. We're going to discuss some important tax and financial issues and I want to make it clear right up front that I'm not engaged in rendering legal, accounting or other professional services. Everyone's situation is unique, so please ? before you take any action ? be sure to check with the proper professionals.

Not just real estate. How does real estate compare to other investment alternatives?

All investment alternatives have their own set of positives and negatives. And these positives and negatives need to be considered before investing. Things such as risk, appreciation potential, liquidity (meaning how fast could you convert your investment to spend-able cash) and how much management is required. These things should all be considered.

Even within the real estate world, there are investment alternatives: rental houses, duplexes, apartment buildings, shopping centers and so forth. Fortunately, the concepts you learn in this program will apply to almost all investment properties ? from rental houses to skyscrapers.

Keep in mind, you're not the accountant, you're not the attorney. Leave that stuff to the professionals. By knowing the material in this program, you'll be able to "talk the talk." Once the attorneys and the accountants in your town realize how knowledgeable you are, it's likely you'll get some good referrals because they have clients who want and need good investment properties. A good accountant, a good attorney, and a good real estate agent ?that's the best financial team in the world!

While it's not part of our direct discussion here, you might take some time and give some thought to how you would compare real estate to other investment choices. The interesting thing is each individual investor, based on their personal knowledge and experience, views the investment alternatives differently. For example, what's risky to one person might seem safe to another.

Real estate investing involves numbers. There's no way around it. However, the examples and case studies in this program are designed to keep things simple. Be sure to have your trusty calculator by your side. Let the calculator work the numbers so you can concentrate on the concepts.

Since the best way to learn is by doing, you'll be able to practice what you're learning by doing Case Studies. Please print out the PDF titled "Course Materials." It contains the Case Studies and Investment Property Worksheets we'll use later in this program.

Chapter Two:

Buying a "Money Machine"

How to Work with Real Estate Investors - Part 1

Buying a property as an investment is very different than buying a house to live in.

With an investment property what you're really buying is a "money machine." And the investment value of the money machine is determined by how much money it produces. If you went to a shopping mall to buy a money machine the first questions you'd ask the sales clerk would be, "How much money does this money machine produce?" and "How fast does it produce it?"

Like any machine, an investment property is made up of parts. Each part plays an important role in making the machine work efficiently. If one part

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