Thanks Candice. Great info.

I also agree that there are some 'not good' teachers out there. My prelicinsing instructor told my class that everythig we needed to know for the exam he was going to tel us and all we need to do was listen to him.

So Wrong...there was much more to the exam than he told us. I studied all of the notes that he went over and failed the first time around. I studied the book along with everything else and past without a problem.

I got accused of "overthinking" in my class. I was asking questions, maybe the instructor wasn't prepared. I thought it was a good thing to think. Anyway, I have given it up and now I just react. Sometimes I just over react.

Thanks Candice for reminding me it is ok to think. We blondes need to stick together. lol

Damn skippy! Blondes rule the world.

LOL now you kids are bringing back memories . . . I sparred with that prelicensing instructor on a few occasions. I am docile until irritated. :)

When I took my broker's hours, completely different story. The teacher I had, whose dad was RE Commish for I think 13 years (she owns this school)

www.RealEstateED.com

had a style I like . . . an exchange of info, ideas and real life examples.

She wrote an amazing program that ties study questions to each of the Statutes and Commissioner's Rules. You see the 'problem', then there is a Statute or Rule that applies right next to it. So you figure out how to correct it, and why. Not just 'here's the answer, remember it, you still don't know jack but you'll pass your test'.

If you tell someone brand new to the business, "Get a survey", are you positive they will know what a survey IS?

Ditto for title insurance. Why is that necessary? SOMEONE needs to give a basic explanation.

In prelicensing, I know time is very limited. But there are better ways.

When I took my pre-licensing, my mom had been selling for a few years. I asked a question about a deal that had died in her office. The house was on acreage and had several outbuildings and greenhouses and the loan was denied because of the appraisal. Not enough value to the house itself. At the time I couldn't understand it. So I asked in class. "Everybody ignore what Jackie just said! It will confuse you for the test. That's the type of thing your brokers will teach you!"

In Michigan you take 40 hours of mostly fair housing (at least that's how it was 16 years ago). Nothing about selling real estate. If the test is basically a fair housing test with a little grade school math tossed in, Michigan might want to consider a post licensing class to actually teach real estate. I was fortunate to have my mom and I worked for a small brokerage that gave a lot of one on one training, and there was always an experienced agent around (as well as my broker) to help whenever I needed it.

Now see Jackie, that is exactly the kind of information I think SHOULD be included in a prelicensing class! Perhaps not half a day devoted to it, but five minutes? It would give the students insight.

I also think that maybe prelicensing instructors should all be practicing brokers. I'm sure many would disagree, but the emphasis on 'passing a test' over 'learning fundamentals' is lopsided IMO.

Teachers who got a credential and went over the course material a few times -- their instruction is one dimensional.

We know there are many layers in this business.

I agree that instructors should all be practicing brokers. I also think more than 40 hours of class time should be required. Maybe several shorter classes. And additional classes for those who wish to sell commercial real estate.

The same for instructors teaching classes that earn a NAR designation. One of my previous buyer specialists took her ABR class from an instructor who sounded like she hadn't sold since we started practicing buyer agency in Michigan. Everything sounded like she was reciting from a book; not from personal experience.

I have been teaching the pre-license courses for 15 years and have been licensed for over 30 years.  I am assoicate broker for a company that has had real estates sales of a billion dollars a year for the last couple of years.  I will tell you when you leave my class you know what you need to know to pass the state exam, but more importantly you know what it takes to become a professional in this business.  I tell them 80% of the business will be done by only 20% of the agents, they must decide which group they want to be in.

Dennis Jonas

Have a great real estate day.

[Dennis sez: when you leave my class you know what you need to know to pass the state exam, but more importantly . . . what it takes to become a professional in this business.]

The people who take your courses are lucky, Dennis. :)

That instructor that said it was "Rocket Science" had a very low level of Math.

The formula for the Cap Rate is basically A = B/ C

A= Cap Rate B= NOI and C= Sold Price(or Worth)

Therefore if the value of A goes UP with B being constant, then the  value of C can only go down, and if A goes up with C being contant-(no change) then B goes Up Also.

In other words A is always directly proportional to B and Indirectly Proportional to C.

Because of the rules of basic High School Level Algebra !, lol

That guy was not fit to teach R.E.!

The last time I went to a class, I got the instructor all outside of his "comfort zone" ... asking too much and overthinking ... I dont' think he understood why I was in the class. While most people were there to take the class, pass the exam and get the required CE credit, I personally didn't care much about the test (you can always retake) ... what I wanted was to know if we are doing things the right way. Yet another reason why I prefer taking classes online.

I know nothing about these caps ... one more reason to look into it!

[Al sez: That guy was not fit to teach R.E.!]

Yep. And the formula, as you demonstrated, is pretty simple.

Michaela, capitalization rate is just one way to determine if a property will pencil out.

It's great to understand, especially in a buyer's market with investors coming in to pick up properties. They care first and foremost about cash flow.

Cap rate helps figure it out. So does Gross Rent Multiplier:

http://en.wikipedia.org/wiki/Gross_Rent_Multiplier

while you're checking into it . . .  :)

There was a test?

now the Gross Rent Multiplier I do remember being mentioned :-)

Cap rate. That is the rate your buyer can rotate their cap around on his head to contract. 2 should be maximum, but we allow for 3 if you are in Texas. Cause they are not sure if they are wearing the A&M one or the Texas Longhorn one. If Aggie one, takes 3 for sure.

LOL Karen, now Michaela will have to start her research over.

I thought in Texas they wore hats, not caps.

Never mind, Michaela . . . stay the course! ;)

You would think. But no. Caps rule. Thanks!