CAREERS IN
REAL ESTATE
CAREER OPPORTUNITIES
&
LICENSE REQUIREMENTS
Types of Real Estate
Many & Varied Product Types & Sub-categories:
• Residential (single family residences (“SFR”), 1-4 dwelling units,
condominiums, townhomes, vacation ownership, sea-borne
residences)
• Multi-family (market rate; student housing)
• Retail (Regional Malls, Power Centers, Neighborhood Centers, Strip
Centers, Triple Net, Public/Private Concessions, On-site Retail, street
front)
• Industrial (warehouse, manufacturing, distribution, “pick-pack &
ship”)
• Storage Facilities (household goods, art, wine, vehicles)
• Hospitality (hotel, motel, hostel, resort, residences, restaurants, bars,
tourism/convention/visitor bureau)
• Golf & Resort
• Office
• Seniors Housing
• Subsidized & Tax Credit Housing
(cont’d)
•
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Public Facilities Concessions
Entertainment Venues & Theme Parks
Hospital & Urgent Care Facilities
Assisted Living & Convalescent Facilities
Agriculture (crops, vineyards, orchards, live stock)
Water Rights
Mineral Rights
Rights of Way & Easements
Religious Facilities
Energy Generation Facilities
Urban Planning/Land Use
•
•
•
•
Government agency
Regional authorities (RWQCB, AQMD, CCC, CEC)
Economic, Demographic & Population Trends
Public / Private Partnerships (Grand Park; LA River
Project)
United States Green Building Council
(USGBC)
• Green Building Design, Construction &
Management
• LEED - Leadership in Energy & Environmental
Design
Risk Management/Insurance
• Construction (hazard, defect, wrap, completion
and personal guarantees)
• Errors & Omissions
• Liability
• Fidelity Bonds
• Workers’ Compensation
• OSHA & ADA compliance
• Human Resources
• EDD compliance
• Performance & Completion Bonds
• Private Compliance Providers
Debt/Equity & Finance
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Institutional Investment Funds
Institutional Investment Fund Advisors
Financial Analyst
Investment Banks (debt markets;
RMBS/CMBS
Lenders - A cornucopia of resources:
commercial banks; savings & loans; savings
banks; corporate debt (e.g., GE Capital);
mortgage banks; pension funds; life
companies; private equity; credit unions
Mortgage Broker
GSE’s: Fannie; Freddie; FHA; Ginnie Mae
Loan Servicing
Wealth Management
International Right of Way Association
(“IRWA”)
•
•
Senior Right of Way Agent (“SRWA”)
Mineral Rights; Rights of way (identification, acquisition,
easements); Utility Corridor Planning & Acquisition
Conservation Easements
• Conservancy land acquisition (holding entities)
• Conservation easements
• Bureau of Land Management (“BLM”) - Land swaps
Agriculture
•
•
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•
Agriculture (crops, live stock, vineyards, orchards, etc.)
Water Rights (acquisition, sale, trading)
Timberland
Brokerage (sales, leasing)
Land Use, Entitlement & Development
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Urban Planning
Zoning & Government Regulation
Site Acquisition
Demographic Research & Analysis
Use studies
Land Survey
Title Insurance
Environmental Study, Review, & “Impact Reports”
Financial Modeling & Projections
Design: Architecture, Exterior, Interior
Engineering: Geologic, Civil, Structural, Mechanical
Construction & Project Management
Appraisal
• Uniform Standards of Professional Appraisal Practices
(“USPAP”)
Commercial Real Estate Brokerage
• Sales; Acquisitions; Like-kind Exchanges; Tenants in
Common (“TICs”)
• Business Opportunities (“Bulk Sales”)
• Listing Services (Reis, Loopnet, CoStar, AIR, etc.)
Residential Real Estate Brokerage
• Single Family Residences
• Planned Unit Developments (“PUD’s”) e.g.,
condominiums
• Time Shares/Fractional Ownership
• Listing Services (MLS, Internet, Zillow, Redfin, Trulia, etc.)
California Bureau of Real Estate
(“BRE”)
“The mission of the California Bureau of Real Estate is to
safeguard and promote the public interests in REAL ESTATE
MATTERS through licensure, regulation, education and
enforcement.”
BRE Home Page: Essential Information
 Verify a Real Estate License
 2014 Real Estate Law
 Consumer Alerts
 Current News
 FAQs
 Department of Consumer Affairs
 Multiple Jurisdiction License Lookup
 Forms
 File a Complaint
 Real Estate Business Resources
 Complete List of Publications
 Invitation for Public Comment/Hearing Notices
 Connect With Us: Call BRE Public Information Line
 1-877-373-4LIC (4542)
Real Estate Licensing

Broker License
8 Approved Courses
 2 Years of full time experience
 Pass State Exam
 Complete Application


Salesperson License
3 Approved Courses
 Pass State Exam
 Complete Application

Resources & Websites

Bureau of Real Estate http://www.bre.ca.gov

California Association of Realtors www.car.org

Apartment Association of Greater Los Angeles http://www.aagla.org

Franchise Tax Board www.ftb.ca.gov

Institute of Real Estate Management (IREM) http://www.iremla.org

Franchise Tax Board www.ftb.ca.gov

Dept. of Corporations http://www.dbo.ca.gov

National Association of Realtors www.realtor.org

Federal Reserve www.federalreserve.gov

Dept. of Housing & Urban Development www.hud.gov

IRS www.irs.ustreas.gov
RESIDENTIAL REAL ESTATE
SALES
F. RON SMITH
Founder, Partners Trust Real
Estate Brokerage
F. RON SMITH
PARTNERS TRUST
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25 years of service
As an expert in new construction and advisor to my clients in everything from home
staging to color palettes and landscaping, I have successfully represented over U.S.
$1,000,000,000. (that’s “billion”) in transactions
I collaborated with four talented associates and founded Partners Trust Real Estate
Brokerage and Acquisitions in 2009. In just five years, Partners Trust has sold over U.S. $5
billion in real estate with 200 associates in seven offices. One of the key elements to the
immediate success of Partners Trust is the company's ability to network directly with the
best realtors in their markets.
A proud co-founder and President of Leverage Global Partners, which aligns the most
prestigious independent real estate brokerage firms from around the world.
I credit my long-term success to my local expertise and strong community connections. I
introduce my clients to both a home that fits their needs, and a neighborhood and
community lifestyle that matches their interests.
I live in Brentwood on LA's Westside with Tracy, my wife of 26 years. I am enormously
proud of our sons, Evan and Brandon. I enjoy travel, fitness, good wine and live music.
I am an active supporter of numerous charitable organizations, including LA Family
Housing and Concern Foundation for cancer research. I am proud to be a member of the
Executive Committee of USC's Lusk Center for Real Estate.
PROPERTY
MANAGEMENT
So you want to
manage your own
SFR’s, & Condos as
rentals?
What Are Your GOALS…
1.
2.
3.
4.
5.
6.
7.
Safety of Investment
Cash Flow – passive income
Tax Benefits – depreciation, interest
deductions
Diversification of Investment Portfolio
Appreciation (over time)
Pride of Ownership
Equity Build-Up for Retirement or Estate
LEARN THE BASICS
Managing a Home:
A “Simple” Outline

LEASING – marketing; keeping the property rent ready/clean;
receiving inquiries; showing the property; negotiating rent;
accepting applications and screening prospects; receiving
funds & turning over the keys.

MANAGEMENT – move-in inspection; receiving
communications from tenant; handling vendors; collecting
rent; distributing notices; legal action – eviction, Government
or or tenant; insurance claims; and unit turnovers for
incoming tenants.
MARKETING STRATEGIES
Advertising Mediums
Internet; apartments.com; postlits,
Craig’s List; Zillow
Your own website
Property signage
Flyers
Third party agencies – MLS for
Member real estate licensees
RENT
 Establish
initial rental rate based on similar product in
your market, or “enough to cover your mortgage”?
 Rent
Increases:
Economic Changes – what the market will bare
(excludes qualifying properties in rent control areas)
Nuisance – an increase not high enough to
necessitate a move
Rent Control – government regulated increases –
exempt: one detached single family dwelling per lot.
Federal Fair Housing Act of 1968
I.
II.
III.
IV.
V.
VI.
VII.
Race
Color
Religion
National Origin
Gender
Familial Status (pregnancy, medical
condition, gender)
Handicap (disability: mental or
physical)
CALIFORNIA FAIR HOUSING
STATE LAWS
In addition to the Federal Laws, CA has added:

Ancestry

Familial & Marital Status

Gender, Gender Identity, and Gender Expression

Sexual Orientation

Children

Source of Income

Disability or Medical Condition

Genetic Information

Immigration or Citizen ship Status

Religious Creed – dress and grooming practices
Prohibits discrimination and harassment in fact or perception in all aspects of housing;
Requires housing providers to make reasonable accommodations in rules and practices;
Prohibits retaliation against any person who has filed a complaint, participated in an
investigation, or opposed any activity prohibited by the act.
Exception – Not applicable to an owner-occupied, single-family home/condominium who rents out a
room in the home to a roomer or a boarder, and there are no other roomers or boarders living in
the household & shares the living room, kitchen or bathroom.
CA Dept. of Fair Employment & Housing: www.dfeh.ca.gov
REDUCING FAIR HOUSING
RISKS
1.
Become familiar with Federal, State and local
Fair Housing laws. The owner, mgmt. co. and/or
building manager can and will be held personally
and severally liable.
2.
Review practices regularly to ensure that you
and your staff understand the laws and company
policies. Have written Policies & Procedures and
train your staff.
Reducing Risks (cont’d)
3.
Establish a documentation program. Whenever you
or a staff member deviates from the normal routine
or practice, document what you did, when you did it,
and why.
4.
Service & Support Animals – Allowed into all
residential units. Animals of all types that work,
provide assistance, or perform tasks for a benefit of
a person with a disability, or animals that provide
emotional support that alleviates one or more
identified symptoms or effects of a person’s
disability.
The Rental Application
Recommended Information
Residential:
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Name of all adults (18 yrs or older*) who will be occupying the
apartment
Current address and date of birth for all adults party to the Lease
Social Security number for all adults, however, cannot be required per
AB976, 2007.
Picture ID - Drivers License; State ID card; check birth date & address,
copy them for the file
References – name, address, telephone bank acct. #, friends, previous &
current landlord; obtain emergency contacts (get at least two, one being
a close family member)
Verifiable Income – sources: paycheck stub, Social Security voucher,
income tax return, etc.
Signature of all adults on the application to allow you to obtain a credit
report and other reference check reports
* Emancipated Minor – State Court approved
THE LEASE

Obtain a “current” Agreement with Addenda.

An Agreement with a term of one (1) year or more
must be in writing. However, even a month to month
tenancy should be in writing.

California Civil Code requires a termination
notice of at least 30 days if < 1yr., 60 days if ≥ 1
yr.; daily or weekly notices if those are the terms
of the stay. Be aware of Gov’t Rent Control/
Tenancy laws that may supersede your notices.
Tenant Screening
Follow these steps when considering a tenant’s application to rent a
dwelling unit:
1.
The applicant’s credit history is the best way to determine credit
worthiness.
2.
Review the application with the prospective tenant when it is first turned
in. This will help confirm information and give them an opportunity to
explain any issues you may encounter with their report. NOTE: First in
first reviewed in accordance with the Tenant Selection Criteria/Policy.
3.
Order a credit report and if policy requires, a criminal report and eviction
report. Can charge up to $45.99 (Dec.2014), but cannot exceed actual
cost for report plus reasonable value of time spent to obtain information.
4.
In reviewing a credit report, check for: applicant’s rental history,
collections, late payments, and debt to income ratios. Consider how
medical service collection issues might have effected their payment record
if applicable.
5.
Obtain at least three year’s residency and employment history.
Tenant Screening (cont’d)
6.
Call at least one prior Landlord for referral. Please note that the applicants
current Landlord may not give an accurate recommendation if:
A. that Landlord wants that tenant out , or
B. that Landlord does not want to lose that tenant.
Ask these questions:
A. Is the rent current?
B. Is the rent paid on time?
C. Is the tenant being asked to leave?
D. Is the tenant leaving before the expiration of the Lease?
E. Would the Landlord rent to this tenant again?
7. Call the employer and ask the following questions:
A. What is the applicant’s annual income?
B. How long has the applicant been employed?
C. Is the position temporary or permanent?
D. If the applicant has been employed for only a short time, call
the previous employer.
Tenant Screening (cont’d)
Bankruptcy is not necessarily a bad risk. Recent filers for Chapter 7
Bankruptcy are less likely to have debts and more likely to have cash for
living expenses. Usually only can file Ch.7 but once every 8 years (consult
with attorney for exceptions). It is important to determine why they filed.
For example: medical bills vs. credit card (consumer) spending;
Business/Investment vs. personal loans.
Your Tenant Selection Criteria can state that the Bankruptcy “has been
discharged” and a 12 to 24 month period of no late payments of rent
and/or credit is required thereafter.
Of course, current rent payment status is very important. If the applicant
has previously skipped or failed to pay rent, it will probably happen to
you, sooner or later!
Security Deposit Laws
Maximum of 2 months unless the premises is furnished, then
landlord can collect 3 months as a deposit. Accounting within
21 days of lease termination.

When notice of move out received:
 Inspection w/ tenant 2 weeks prior to move out
 48 hour minimum notice of inspection
 Tenant is not required to attend, but it is
recommended that they are there.

Damages to Owner for a bad faith security deposit
refund could be up to 2 times the deposit amount plus
the deposit,

What can you deduct – delinquent rent, cleaning and
damages (with a receipt for costs/services rendered) –
nothing can be collected for normal “wear and tear”.
MOVE IN/OUT
INSPECTIONS
 Move-In Inspection:


Manager to complete form at the time of move-in
Give tenant a copy of the signed inspection report
Take pictures before they move in
Move-Out Notice by Tenant/Landlord:
Send letter confirming their notice and let them know of the
“pre” move-out inspection date
Conduct inspection >14 before move out. Leave copy of
inspection in unit if unattended by tenant
Post Move-Out Inspection:
Meet with tenant (if possible) just after they move out
Give/send copy of report (signed by tenant if possible)
Include inspection in Security Deposit reconciliation
Take pictures after they move out
PERMISSION TO ENTER
 Emergencies – i.e., fire, water issues
 Verbal or written authorization from tenant for
service requests
 Owner’s request for entry (24 hour Notice) to
show to prospects for sale/rent, lender, appraiser,
gov’t officials, etc.
 Abandonment – recommend 2 people present,
take pictures
 Court Order – at any time, no notice required
LICENSED & UNLICENSED
CONTRACTORS
Licensed Contractors:
◦ Pass and exam for their license type – B, C-10, C-27
◦ Bonded, Insured, Can pull permits
◦ Can lien property for non-payment
◦ Check for licensing with the California State Licensing Board
(“CSLB”) at www.cslb.ca.gov or (800) 321-CSLB
Un-Licensed “Handyman”:
◦ Not required to have insurance
◦ Cannot pull permits or lien for non-payment
◦ Work limited to $500 (labor & materials) or misdemeanor
charges can be brought against them.
◦ Labor charge lower than contractors – less recourse
options to get the work completed or uphold warranties.
CONTRACT TIPS
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Develop a “scope of work”
Get several bids and check references.
Require a written contract, and don’t sign it until you
understand the terms.
Maximum ten percent (10%) or $1,000 as a down payment
whichever is smaller (for single family homes).
Don’t pay cash and don’t let the payments get ahead of the
work. Put together a progress payment schedule if the job
warrants it.
Common to have ten (10%) retention of the total contract
amount until 10 days after the work is completed: 1) to make
sure the job is done right; and 2) all subcontractors are paid,
no liens.
Owner should record a “Notice of Completion” for large
jobs.
SMOKE / CO DETECTORS
I.
Carbon Monoxide (“CO”) detectors required in
each dwelling unit intended for human occupancy
with fossil fuel burning heater or appliance, fireplace
or an attached garage.
II.
Smoke Detectors – 1/1/14: owners of SFR required
to test and maintain smoke detectors.
III.
New battery operated smoke alarms being
manufactured for 1/1/14 deadline. 10 yr. life battery
that makes the unit disposable.
Landlord’s Responsibility
- Habitability 1.
Nine points from Civil Code 1941.1, Green v.
Superior Court (1974), “every residential lease
had an implied warranty of habitability which the
tenant cannot waive”.
2.
Breaches of habitability can allow tenant to
withhold rent until repairs are made.
a) must give written or verbal notice;
b.) allow a reasonable time to repair.
3.
After a reasonable time, tenant may personally do
or contract for the repair and withhold amount
from rent used to repair (CC 1942). Tenant can
withhold up to one full month’s rent, twice per yr.
CA HABITABILITY REQUIREMENTS
FOR A DWELLING UNIT
1.
2.
3.
4.
5.
6.
7.
8.
9.
Effective waterproofing and weatherproofing of roofs &
walls.
Unbroken/secure doors and windows
Plumbing in good working order – hot & cold running
water; connected to sewage line.
Heating & gas facilities in good working order.
Unit’s electrical (lighting, wiring & equipment) system in
good/safe working condition.
Clean and sanitary buildings, grounds & appurtenances
which are free from debris, filth, rubbish, rodents &
vermin.
Adequate trash receptacles in good repair.
Floors, stairs and railings in good repair.
Compliance with building and housing code standards.
Addt’l Habitability Standards
Working toilet, wash basin, and bathtub or
shower.
11. Kitchen with a sink, not made of absorbent
material.
12. Natural lighting in every room.
13. Operable deadbolt locks on main entry doors
and locking or security devices on windows.
10.
UNLAWFUL ACTS BY A LANDLORD
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Tenant Lockout (key
change) without Court
Approval
Seizure of Tenant
Property
Removal of Doors and
Windows
Shutting off of Utilities
(fine of $100 per day,
plus damages)
Trespassing – jail time
if prosecuted by D.A.
EVICTION
What a Landlord cannot do:
A. Retaliatory Eviction – If tenant legitimately complains about
property issues: habitability, exercising legal rights (suing Landlord) or
joining a tenant union, Landlord cannot evict or increase rent for 180
days if complaint is habitability. Complaint can be oral or in writing.
B. Constructive – Landlord turns off utilities, changes locks, etc. CC
789.3, $100 per day for each violation.
C. If in Rent Control – can only evict for “just cause” (see City
housing department for definition.
Actual Eviction (court ordered) – hire an attorney, proper Notice to tenant,
Unlawful Detainer case filed, proceedings through Superior Court for the
State of CA.
Eviction after Foreclosure (5/10) – If new owner want to move in.
1. Tenant on a M-T-M, 90 day notice
2. Tenant on a Lease, 90 day notice after lease term
expires unless tenant is related to the former owner.
3. Affirm City statutes for current regulations.
SERVING AN EVICTION NOTICE
(GENERAL STEPS)
◦ Serve the resident with a Notice to Pay Rent of Quit
 Do not include amounts other then base rent for that
month
 Personal Service to the named person on the lease or a
responsible adult.
 If resident or adult not home, post notice and mail a
copy.
 Complete a Declaration of Service.
◦ Wait the appropriate # days and then have an attorney file
an Unlawful Detainer action
 Do not count the day Notice was served
 Last day must fall on a business day.
Pacific National
Property Services, Inc.
Services Include:
 Maintenance and Remodeling
 Apartment unit and grounds cleaning
 Temporary Personnel
 Consulting and Training
Don Brenon, CPM®
President
310-926-8823
dbrenon@pacific-companies.com
Serving the greater Los Angeles & Orange Counties.
© Copywritten material, cannot reproduce without written consent of presenter
QUIZ
1. The California Bureau of Real Estate (“BRE”) issues how many different types of real
estate licenses?
a.
one
b.
two
c.
three
d.
four
2. California real estate law requires all Sellers of single family residences (“SFR”) to pay
a real estate commission equal to __% of the gross sale price.
a.
2%
b.
5%
c.
6%
d.
There is no California law that requires any payment of any real estate brokerage
commissions to any real estate licensee, upon sale of any SFR
3. In California’s residential real estate market, the customary gross commission
Seller should pay is:
a.
2%
b.
5%
c.
6%
d.
there is no customary commission amount
4. Which of the following is a legally valid form of commission payment to a real
estate licensee?
a.
money and/or promissory notes
b.
an equity interest in the acquired property
c.
personal property
d.
any of the above
5. Which home renovations and/or remodeling projects most often return at least the
original capital investment upon resale of the home?
a.
kitchen or bathroom remodel
b.
adding one bedroom
c.
installing a swimming pool/spa feature
d.
installing a new energy efficient/fire resistant roof
e.
adding a 2-car garage
f.
installing an outdoor cooking/dining area
6. The market value of single family residences always appreciates.
a.
true
b.
false
7. To obtain a real estate salesperson license in California, an applicant is required to successfully
complete more credit hours than a:
a.
doctor, electrician, psychologist, or chiropractor
b.
veterinarian, architect, lawyer, or commercial airline pilot
c.
cosmetologist, police officer, chef, or CPA
d.
personal trainer, plumber, or dental assistant
e.
none of the above
8. Freda, a 39 year old single woman, owns, as her sole and separate property, a 10
acre, 180° view bluff-top, single family residence appraised at $25 million, on the
edge of Toyopa Drive in Pacific Palisades overlooking the Pacific Ocean. The
property is free and clear of all liens and loans. Freda fell in love with her new bf,
23 year old Jay-Sea-Vu, who has just arrived from Texas and moved in with her as he
begins his singing career in Hollywood, and has convinced Freda to marry him.
Upon marrying and immersed in wedded bliss, Freda’s Toyopa house:
a.
automatically becomes Community Property, ½ owned by her husband, Jay-Sea-Vu
b.
can never become Community Property
c.
may gradually become Community Property during the duration of the marriage
d.
remains her Separate Property until she decides to allow it to become Community
Property
THANK YOU 
WE LOOK FORWARD TO
SEEING YOU
&
TEACHING YOU
IN OUR CLASSES !
UCLA EXTENSION