cram course

Download Cram course

Post on 22-Jan-2015

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Real Estate

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  • 1.
    • Avery Yarbrough & Associates
  • Real Estate License
  • Cram Course Review
  • Thursday & Friday
  • 9 till 4 with an hour for lunch

2.

  • House Keeping Rules
  • Cell Phones -Off
  • Computers - Off
  • Breaks each hour -Be back at 10 minutes
    • Restrooms are in break room
    • No smoking at front door go to end of building
  • Mindful of your classmates
    • We have a lot of material to cover
    • Hold questions till breaks

3.

  • Welcome
    • Everyone, classroom students, online, other schools
  • Materials
    • Green Book
    • Law Booklet & Law Test
    • Handout Packet
    • Handouts
  • We need your contact information
    • Fill out at break

4.

  • Lots of different material to cover in 2 days
      • A cres toZ oning
    • Need to know about acres and zoning to pass test
    • 140 questions can miss 42 and still pass
    • 100 general& 40 Alabama Law
    • More than one answer may look right
      • Test taking anxiety
        • Think long, think wrong
      • Analytical personalities think too hard
        • Dont read anything into question
      • Any test you dont study for will be hard

5.

    • 6 sections 100 Questions&40 on Alabama law
    • 1Listing Property31%of general knowledge test
    • 2Selling Property21%
    • 3Property Management 14%
    • 4Settlement/ Transfer of Ownership14%
    • 5Financing10%
    • 6Professional Responsibilities10%
    • Law is 28% of total test
    • We will have lecture then shorttest
      • Do better with this method

6.

  • 65% to &70% pass test on first try
  • Only about 60% online pass on first try
  • About 80% of our students pass on first try
  • Second test try pass rates drop
    • And drops even more on third try, only 20% pass
  • Test should be difficult
    • Dealing with important subjects
    • Do it right the first time
      • $71 per test
    • It is important that you take this seriously

7.

  • Look at the packet on the right
  • Outline of class
  • Words Know vocabulary
    • Nerd Words on test
    • Obscure wordsReliction, Riparian, Reentry, Remainderman, Recording, Range, Reconciliation, Rectangular System, Redlining, Regression
  • The way we studied as children is the way to learn
  • Read, Study, Test
  • Our other classes
    • Post License, Broker, CE

8.

  • Test taking tips
    • 80% of those that fail get between 65 to 69
    • Only 1 point between success and failure
    • Listento lecture
      • Make notes

9.

  • Schedule a morning test
  • Anxiety is less in AM no time to worry
  • Brain sharper in AM
  • Review night before
    • Eat fruit night before brain food- 12 hours
  • Dont study past 9PM
  • Go to sleep early and let your brain rest

10.

  • On the day of test
  • Get up early and be relaxed , not rushed
  • Dont read paper or listen to news
  • Eat a good breakfast
  • No more studying
  • Get to test site early
    • 15 minutes late and you cant take test

11.

  • At test site
  • Have photo ID and 1 more with signature
    • Do practice questions on computer
    • Maintain pace throughout exam
    • Dont wrestle with a question
    • Read question twice
    • Read answers twice
      • You will know answer in your brain
      • If you dont know, then bookmark and move on
      • Bookmark math and skip -- work them last
    • DO NOT GO BACK AND CHANGE AN ANSWER
      • Will usually get it wrong

12.

  • Finance has 10 questions
    • Most students have trouble with real estate math
  • We go over math, but dont teach math
    • We will help as much as you need
  • Having Trouble?
    • Call us for extra help this is what we do
    • No extra charge for this
    • We want you to do well on the test

13.

  • Power Point Handout is your Outline
  • Take notes on handout
  • Study them later
  • More important to listen to lecture
  • Story about Finance
    • Elementary concept

14.

  • 1934 Mortgage industry began under FDR
  • Horrible economy end of Depression
  • Housing - the way to make economy grow
    • 50% down payment at that time
  • FHA created 3% down payment
    • More likely to default
      • Walk away if times get tough
      • Insures lender

15.

  • FHAinsuresloans
    • Does not loan money or build homes
  • FHA mortgage defaults - FHA pays
  • FHA set maximum loan amounts
    • People started buying homes
      • Economy began to recover
    • Lenders ran out of money
    • What could they do?

16.

  • Secondary market created to buy mortgages
  • Primary lenders sold pools of mortgages
  • Fanny Mae bought these mortgages
  • Primary lenders collected payments
    • Escrow for taxes and insurance
    • Service loan for a fee
    • Lenders also charged closing cost to make money
      • Origination, Discount, Service fee
  • Fanny Maesold mortgage backed securities to investors

17.

  • I950s more buyers wanted a piece of the pie
    • Private Mortgage Insurance PMI
    • 5% down payment on larger loans
  • Saving & Loan Banks needed secondary source
  • Freddie Mac created
  • Today they both buy the same loans
  • 1960s government realized it was in trouble
  • Turned into private companies
  • Didnt want risky mortgages
  • G innie Mae came about to buy risky loans
    • G overnment owned
    • G uarantees loans

18.

  • 3 Financial Intermediaries
    • Primary Lenders
  • InstitutionalRetail Banker
    • Loan their own money- Fiduciary
  • Non- InstitutionalWholesaleBroker
    • Loan money that is not their own
  • Insurance companies and pension plans
    • Have lots of money to invest
    • Alabama retirement fund

19.

  • Mortgage Brokers
    • Not their money
    • Get it fromnon - institutiona