CLASS 1:  RENT VS PURCHASE

• What is motivating you to invest in real estate?
• The difference between investing in a primary residence, part-time vacation residence, commercial property for your business, and rental investment property
• Financial resources you need in advance of a purchase
• Comparing primary residence cost or renting to the cost of home ownership – primary
• Will you save on taxes by being a homeowner?

CLASS 2:   FINDING A PROPERTY

• Researching properties – the fun part – where to look – using Zillow, Streeteasy, Realtor.com
• Using a broker – pros and cons, understanding commissions, what is FSBO
• Factors to consider in your search – how to research the area
• Difference between a Cooperative and a Condominium 
• Understanding the Co-Op or Condo’s financial statements  –  with Focus on accounts receivable, accounts payable, and reserve funds. Risks if the building relies on rent from commercial tenants.
• Interviews by Co-op and Condo Boards
• Flip taxes and assessments
• Professionals you need on your team (attorney, accountant, insurance broker)

CLASS 3: PURCHASE AGREEMENT

• Purchase Agreement – key clauses (Inspection Dates, Mortgage Contingency Date)
• Timing: Attorney review, Hiring a Home Inspector, Applying for a mortgage
• Understanding Cooperative or Condominium Financial Reports
• Closing fees – what to expect (utility measurements, real estate pro-rating)
• Securing Insurance before closing
• Capital Gains tax and the benefit you receive if your primary residence is sold.

CLASS 4: SHOPPING FOR A MORTGAGE

• Mortgage Brokers vs. Going Direct to a lender
• Pre-Approval and Pre-Qualification letters
• How much can you afford?
• Paperwork to gather in advance of an offer,
• Factors that are important in Shopping for a Mortgage – interest rates, adjustable vs. fixed, term, origination fees/points, other fees,
• What is meant by “escrow,” and how is it calculated
• Prepayment penalties, subordinated debt, balloon payments.
• Review of a closing settlement statement

CLASS 5: BANK APPRAISAL REPORTS, REAL ESTATE TAXES, AND INSURANCE

APPRAISAL REPORT

• What is an appraisal report? And what is the purpose?
• How can an appraisal report affect financing?
• How can a purchaser protect themselves from an appraisal report that does not support the contract price?

REAL ESTATE TAXES

• How does the assessment process affect property taxes?
• How are Real Estate taxes calculated? What is a Mil Rate?
• When are Real Estate Taxes Billed?
• Why does the mortgage company often require payment of property taxes?
• What is an escrow account?
• How often are real estate escrow accounts re-evaluated?

INSURANCE

• What are the different types of real estate insurance policies?
• What insurance is required?
• What is commonly excluded?
• How much coverage do you need?
• How does the deductible effect Premiums?
• What is the difference between Assessed Value and Replacement Value
• What is a Declaration Sheet?
• What Questions Should You Ask Your Insurance Agent?
• Where do you Purchase Flood Insurance?
• What is Liability Coverage?

BONUS CLASS # 6 (by invitation only) COMMERCIAL REAL ESTATE (for investment purposes)

• Students who participate in the above five classes, complete all homework assignments, and are interested in learning about commercial real estate will be invited to a sixth session, which will cover evaluating real estate for investment purposes.
• What is Commercial Real Estate?
• 10 Key factors in evaluating Commercial Investment real estate.
• How commercial mortgages differ from Owner-Occupied properties
• How to calculate NOI (Net Operating Income)
• Understanding IRS Schedule E to report commercial property income and expenses
• What is a Cap Rate? and how does the current interest rate environment affect CRE values?
• What is the difference between Taxable Income and Cash Flow
• Understanding Depreciation expense
• Management – Self-Managed vs. hiring a Property Manager
• Finding tenants- broker vs. doing it yourself, applications, and credit checks
• Security Deposits – new laws limit what can be requested
• Recent changes in the laws which are more protective of tenants
• Eviction challenges
• Selling CRE exit expenses, capital gains tax, depreciation recapture tax, Real Property transfer taxes,
• Alternate ways of becoming a diversified real estate investor (REIT’s)Investment real estate – how commercial mortgages differ