Pre- License Intense Review

Real Estate Pre- License

Steve McTyeireSteveMcT@gmail.com205-807-5200NewLocationRealty.comAlabamaRealEstateClass.com

Alabama Salesperson License100 General knowledge questions + 40 Alabama LawTopic# of Questions on Test SessionListing Property 341Selling Property222Property Management122Settlement/Transfer173Financing123Professional Responsibilities 33Alabama Law404

State TestSchedule with goamp.com 4 days in advance$71 9AM or 1:30PMIf 15 minutes late, must reschedule & pay againH&R Block Office Lakeshore by Wal-MartOn Crestwood across from Home Depot2 forms of ID Government issued with picturePlus another with signature 3 hours They will give you pencils and paperCan take in calculator only

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1A - Listing Legal DescriptionLot sizePhysical dimensions of structureAppurtenancesUtilitiesType of constructionEncumbrances Compliance with building codesOwnership of recordHomeowners association bylaws and feesBrokerage feeProperty Taxes

Metes & BoundsGovernment, Rectangular or Geodetic Plat Lot & Block Subdivision

Legal Description Sufficient that a surveyor can find property boundaryMetes and Bounds 1st system Pilgrims & Plymouth RockMetes (Distance) & Bounds (Direction)POB (Point of Beginning) Then describe M&B around the boundary to POBMonument (natural or artificial) marks POB or cornersMore important than quoted distance (more or less)Benchmarks reference point to mark distanceDatum reference point to measure elevation

Legal Description Sufficient that a surveyor can find property boundaryGovernment, Rectangular, or Geodetic SurveyBase Lines township line Tennessee/Alabama line6 miles south is another township line & each 6 miles south is anotherThis 6 mile strip from Mississippi to Georgia is a township tierIt is called township 1 south or T1SRange Lines Run north and south every 6 milesHuntsville is the beginning point Principle MeridianEverything west of Huntsville is labeled W R1W is the 6 mile strip of land to the west of HuntsvilleTownship Intersection of 2 township lines and 2 range linesLegal Description Sufficient that a surveyor can find property boundary

Hoover is in: T19S R3W Huntsville MeridianLegal Description Sufficient that a surveyor can find property boundarySection Each township contains 36 sectionsSections are 1 mile X 1 mileMile is 5,280 feet (Oak Mountain is 5 miles down Hwy 280)Each section contains 640 acresAcre is 43,560 square feet (Ask at the 7-11 store about a acre)Football field is 48,000 square feet, Walmart -2 acres M/LAcre is 208.71 feet X 208.71 feet Correction lines government check corrects for earths curvature24 miles square 4 townships X 4 townshipsWest side of this square will lose square footage as the line goes north - creatingFractional sections / government lots odd size sectionsLegal Description Sufficient that a surveyor can find property boundary

Section 16 is school sectionNW1/4 of the SW1/4 of section 12T19S R3W Huntsville Meridian640 / 4 = 160 / 4 = 40 acresLegal Description Sufficient that a surveyor can find property boundaryLot & Block or Recorded Plat - SubdivisionLegal Description for Lot & BlockLot #Block #Subdivision NameCountyState

Legal Description Sufficient that a surveyor can find property boundary

Personal Easement ends upon death of either party get to lake by neighbor

Easement Appurtenant recordedRuns with the land driveway in this survey

Easement by necessity needed forIngress & Egress - landlocked

Easement by prescription Claimant uses property HOT CAN

Set back lines on all sides -How close structure can be to property lines

Bulk Zoning - - No structure over certain height Airport approach

Sketch Survey states propertys legal description

Spot survey shows location & shapes of buildings on lotCalculating physical dimensions of Lot & StructureLot size 450 X 484= 217,800 square feet

Structure size 60 feet X 40 feet= 2,400 square feet

450 feet Front Foot484 feet40 feetSpots HouseLot 1 , Block 1, Green Acres60 feet

Legal Description Sufficient that a surveyor can find property boundaryCalculating sizeLot is 450 x 484 = 217,800 square feetFirst # is front foot (street)

Land in this area sells for about $30,000 per acreWhat is the market value of this lot?217,800 / 43,560 = 5 acres x $30,000 = $150,000

Spots house is 60 x 40 = 2400 square feet Only heated and cooled area above ground is included in living areaComparable homes sell for about $120 per square foot plus land costWhat is the market value for this house and land?2400 x $120 = $288,000 + $150,000 land = $438,000

Market Value, Price, and Cost are not necessarily related

$438,000 Market Value

How much is a 10% commission?

How much is a 5% commission?Divide the 10% fee in half to $21,900

Listing broker splits 50/50 with selling brokerListing agent gets 60/40 split with company How much was check to agent?438,000 X .05 =$21,900 total commission

50% to selling broker = $10,950

Listing broker then splits60% to listing agent = $6,57040% to listing brokerage = $4,380New buyer got an 80% LTV mortgageHow much was loan?$438,000 X .8 =$350,400 loanBuyer paid origination fee of 1 pointA point is 1 % of loanHow much for fee?$3,504

Buyer paid 3 discount points Increases lenders yield by 3/8 %How much for points?$10,512Loan points are based on loan amountMay be added into loan

Interest rate is 6% on $350,400How much is payment (amortized loan) of 30 years

Rate chart 30 years @ 6% = Factor of 6

350.4 X 6 = $2,102 payment of Principle & InterestTaxes and Insurance will be on top of P&I

Its a PITI the payment is so much

$2,102 monthly payment

$350,400 loan X 6% (.06) / 12 = interest first month$21,040 annual interest / 12 months = $1,752 first month interest

$2,102 payment - $1,752 interest = $350 principleEntire first years principle will only be about $4,200First years interest will be about $21,000

Second month loan balance$350,400 - $350 = $350,050

Second month interest$350,050 X .06 = 21,003 / 12 = $1,750

Proration

Closing on 21th of monthUse bankers year of 360 days, 12 months, 30 day monthPrepay interest for 10 days, includes day of closing$350,400 X .06 = $21,024 / 360 = $58.40 per day X 10 days = $584.00Pays interest for balance of month of closingFirst payment will be due the 1st of second monthWill include interest for first month after closing

Legal Description Sufficient that a surveyor can find property boundaryAppurtenance attachment of rights , benefits, that transfer with real propertyTangible- touchable physicalBuilding and improvementsCeiling fan is personal property until attachedIntangible rights and privileges easementsEasement right to use the land of anotherMay be attached or personalAppurtenant easement Benefits a parcel of real estateInvolves two tracts of land owned by two different peopleDominate easement benefits Servient easement is burdened Serves anotherLicense right to use anothers land for a reason fishing Revocable & Terminates upon death of either party

Water RightsRiparian- Ripples, RiversNon-navigable own to center Navigable - own to edge of water

Littoral Lunar, Large lakesOwn to high water mark

Water passing through landMay use Must not be stopped, polluted

Property rights include rights below & above surfaceSubsurface support Subsurface mineralsRights may be sold separately Airspace above propertyLimited to usable spaceOwner cant stop airplanes from flying over propertySubject to government controlsSolar rights

Legal Description Sufficient that a surveyor can find property boundaryUtility 2 definitions Power, gas, cable services provided to a propertyUse for a particular reason

Encumbrance Any claim, lien, charge or liability that attaches to real estate Not a possessory interest2 general classificationsLien usually monetary - mortgageEncumbrance restriction, easement utility

Utilities & AvailabilityPower, cable and phone can be underground, if soWill be put in by developer when they put in Water, Sewer, Streets, Curbs, Gutters, & SidewalksSome older and rural areas may have well waterUtility boxes and poles are usually close to property linesMay have private sewer systemOr Septic Tank Must be cleaned out about every 5 yearsCable sometimes may not be in new communitySatellite dishes are normal fixtures in new home communityNatural gas may not be available in all areas, if notPropane tanks have restrictions , environmental Construction TypesSite BuiltBricks & SticksModularBuilt off site and trucked in modules, assembledMobileTrailer Wheel EstateConstruction Exterior - ResidentialSlabCrawlFoundationFull, Partial Poured concreteBlockExteriorBrickSidingWoodVinylEFIS Synthetic StuccoRoofShingleMetal Construction Interior - ResidentialFloorsConcrete slab or wood sub-floorCeramic tileVinyl tileWoodRealLaminateCarpet

Construction Interior - ResidentialWalls and ceilings are normally sheetrockWall studs will be 16 apartCeiling joist will be 24 apartCeilings Smooth, TexturedCathedral, 9 foot, Tray

Ownership of Record

You are Here Ownership of Record

Homeowners Association CC&RHomeowners Association FeesSquare Footage in MLS

Brokerage FeeFee or Commission charged for facilitating transactionNever discuss companys commission with outside agentsViolation of Anti-Trust Law (Sherman Act)Fee may be based on flat charge, percentage, or by hourCommission usually is a percentage of sales priceCommission is divided into two partsListing Agency that secured the property owner (seller)Selling - Agency that found buyerMay be split equally between both agencies or not - DRCBroker splits commission with agent50/50 to 80/20 Plus feesMore sales volume will usually get higher splitSome brokers charge a fee to agent each month and pay higher %Property TaxMillageRates

Property TaxMillageRates

29,411 / 405,120 = 0.0725 mils

Use T formula to solveOne of PETEs powersPoliceEminent DomainTaxEscheatQuestions on Legal DescriptionIs the street address sufficient as a legal description?What makes a legal description sufficient? What are the 3 methods of legal descriptions

What does metes mean?What is a POB?What is a monument?What is a benchmark?What is another name for rectangular survey?Which direction do townships tiers run?The intersection of township tiers and ranges are what?

How big is a Township?Where is T19S, R3W Huntsville Meridian located?How many sections are in a township?How big is a section?How many acres are in a section?640 acres = 1 section = 1 mile X 1 mile

What section is due north of section 1?

Where in the section is NW of the SW located?

Where in the section is NW of the SW located?XHow many square feet are in an acre?Ask at the 7-11 about how big an acre is 43,560

Acre is 208.71 feet X 208.71 feet squareHow long is one side of a section in feet?How big is a government check correction?What elements must be included in a lot & block description?1 Lot & Block number2 Name or number of the subdivision plat3 Name of county and stateSketch Survey shows location and dimensions of land Spot Survey Spots house on surveyShows location and size of buildingsWhat is a lien?What is an encroachment? What is a specific lien?What is a mechanics lien?What is a judgment? What is a voluntary lien?What is an ad valorem tax? What is meant by milWhat is an assessment? What is the difference in an assessment & an appraisal?How is the priority of liens established? 1B Assessment of property valueLocationAnticipated ChangesDepreciationDeterioration ObsolescenceImprovementsEconomic TrendsMarket Data

Location Location - LocationRCA IS ZoningBegin with big pictureCity Area Neighborhood StreetWaterfront, Corner, RuralPopulation centers are based on some natural featureBirmingham was settled due to minerals used to make steelIron Ore, Coal, LimeWhen a mining towns minerals are depleted the townAdaptsDies

Cities will form based on interdependence with othersCentral TownPerforms a variety of services for the surrounding areaFirst based on farming servicesTransportation Service TownCentral point based on ports, rail, rivers, road intersectionsSpecial Service TownMining, Manufacturing, Government

Neighborhoods exist in relation to the communities' SocialEconomicPolitical TransportationResourcesTopography

Principle of Expectation (anticipation)People base their actions on what they expect to happenIf we think property values will increase we buyIf we think property values will decrease we rent and waitBased on the towns direction of growthToward somethingUndeveloped landAnother townTransportation nodeFear that town is in declineBelief that town will grow towards an area

Substitution principleMaximum value of property is set by availability of equally desirable property

Foundation of the sales comparison approach Anticipated changesLand use changes slowly over timeZoning changes from:Agricultural toIndustrial Manufacturing CommercialOfficeRetailResidentialSingle familyMultifamily

Economic TrendsFour Phases of neighborhood changeDevelopmentStableDeclineRenaissance

DepreciationAccounting entry for taxCost recovery of investment through tax deductionStraight lineSame amount over many yearsResidential investment 39 yearsCommercial 50 yearsAcceleratedMore depreciation up frontNot based on actual physical depreciation

DepreciationActual loss of value due to any causeLand does not ordinarily depreciateImprovements depreciate Deterioration Deferred MaintenanceNot painting leads to wood rotObsolescence Functional5 bedroom, 1 bathMay be curable if cost to cure is economically feasible Convert a bedroom to a bath Or may be incurable Cost more to upgrade than is worth6 story office building with no elevator, plumbing or electricalExternal Obsolescence IncurableExternal of propertyToxic dump next door

ImprovementsToo much will add more cost than can be recoveredGold fixtures in a mobile home

Progression Value of modest homes will come up to larger, fancier homes

Regression Larger, fancier homes will not be worth as much as in neighborhood of smaller homesLaw of increasing returns Value will increase until a point Improvements will add to value up to a pointElectricity and plumbing in a log home will increase its value

Law of diminishing returns Beyond a point improvement will not add to valueNew vinyl floor in mobile home bathroom will increase valueItalian Marble tile in this bathroom will not return investment

Plottage Principle that land will have more value if plots are combinedAssemblage process of combining plotsHighest and best useSitus preference for a site

DUST

DemandUtilityScarcityTransferabilityValueWhat you think it should sell forPriceWhat it actually sells forCostWhat it cost to build

Not necessarily relatedClosest relationship is new constructionSupply & Demand

Supply factorsLabor availabilityConstruction CostGovernment policyFiscal policy

Demand factorsPopulation growthDemographicsEmployment ratesMarket DataGeneral Data - Secondary Includes social , demographic, economicCollected by government or other agenciesSpecific Data Primary - refers to that specific propertyCollected by appraiser

Birmingham What are some of the things to consider about location?What changes would happen if an interstate went 5 miles west of a town and put in an interchange?What are the zonings classifications?

What would happen if a city raised its taxes too much?What happens to a mill town when the factory shuts down?What happens to a country town that gets a new industry with thousands of new jobs?What happens to the smaller towns around the new factory?What is depreciation to an accountant?How does depreciation help the economy? What will lead to major repairs?What are some examples of deferred maintenance? What is an example of functional obsolescence? What is an example of external obsolescence? What is the difference in curable & incurable obsolescence?Would $30,000 worth of landscaping be an over improvement in a neighborhood of modest homes?Do you think the $30,000 in landscaping is an over improvement for a million dollar home?Where do appraisers get information?If home prices have gone up 6% a year for 20 years, will they go up 6% next year?If a new Walmart Supercenter opened across from your 40 acre farm, how would you feel?What is an example of an improvement to property?1C Services to the SellerResponsibilities of the licensee and the listing firmExplain the concept of property subdivisionInquire about hidden defects known by the ownerInformation about required disclosuresProperty included in and excluded from the salePersonal property and real property differencesNet Proceeds estimationCompletion of listing agreement, provision to sellerDetermination that parties holding title sign listingExplain showing the house and ways to safeguard property1C Services to the SellerDescribe methods of marketing propertyPresentation of offers to the sellerProperty tax informationDevelop and maintain transaction filesDeed restrictions and covenantsForms of ownership interest, issues related to conveyanceFair Housing LawComparative market analysis sales comparison approachComparative market analysis Income derived from useIndependent appraisal necessity 1C Services to the SellerDetermine when an inspection is necessaryNon-ownership interest in real propertyPlanning and zoningResponsibilities of Licensee and Listing FirmMay be Agency or Transaction BrokerAgency Listing Client Principle Fiduciary Work For ClientCOLD ACDutiesConfidentiality Any information gained in confidenceObedience Perform all lawful actsLoyalty Put Clients interest above agentsDisclosure of Material FactsAccountability of all fundsCare Reasonable

Alabama RepresentationSingle Agent Agency must have signed agreementWorks FOR one partyDual Agent - AgencyWorks FOR both parties must have signed agreement Transaction Broker (or their agent) no written agreementWorks WITH one or both parties Non AgencySub-Agent works on behalf of listing brokerNot used any longer

Agency agreement must be in writing - ExpressNo Implied agency Transaction Broker is default relationshipListing Agreement usually creates agency betweenPrinciple property ownerAndBroker Listing belongs to broker, not agentUnless directed by seller, all offers must be presentedTypes of agentsUniversalPower of Attorney - May sign deedCan do anything permitted in name of principle GeneralProperty Manager Can do specific allowed things like have building paintedSpecificReal Estate AgentLimited authority to do things like show home to buyerCan not sign contract for principleSubdivisionsSubdividerBuys large parcel of landSurveyor and engineer determine best division into lotsPuts in roads and utilitiesMust be approved by government agencyRecorded as plat map Book/PageDeveloperBuys lots from Subdivider and builds homesSubdivider and Developer may be same company

Subdivider or developer will also recordPrivate restrictionsCovenants, Conditions & Restrictions CC&R Restricts use of property to ways that will enhance valueMay be more restrictive than zoning regulations Zoning may allow 3 homes per acreCC&R may only allow 1Disclosure Alabama is Caveat Emptor - Buyer BewareNo required seller disclosure statement in Alabama

Must disclose Known latent defects Latent hidden, not easily discoveredPatent - easily discoveredIncludes health or safety defectsIf Agency- must disclose everything known by agentNo duty to discover

Caveat Emptor does not apply to Health & SafetyAssumption of DutyNew ConstructionDirect QuestionAlabama required forms:RECAD Real Estate Consumer Agency DisclosureAt first contact before any confidential information is disclosed to anotherLead Based Paint DisclosurePre-1978 homes

Misrepresentation Material Fact not disclosed

Fraud if:You made statement, or notBuyer, Seller relied on informationSomeone was harmed

Property included in or excluded from the sale

Real PropertyLand from center of earth to reasonable height aboveIncludes mineral and water rightsThese may be sold separatelyIncludes appurtenances runs with the landAll rights, privileges and improvements that transfer with landMay be tangible (can touch) easement Or non-tangible - right to use Personal PropertyThings that are tangible and moveable, not real propertyChattels ( also called personalty) Title to personal property is transferred by bill of sale

Seed personal propertyPlanted seed - real propertyTree real property - Fructus naturalesSevered tree personal propertyTree cut into lumber personal propertyLumber nailed to house real property

Fructus industrialesAnnual crops are considered personal property - emblementsFructus naturalesUncultivated crops and trees are considered real property

Trade fixtures Necessary for business operation personal propertyMust be removed prior to lease termination Any damage must be repaired

RequiredNet Sheet

Listing AgreementMay be Agency or Non AgencyMust have expiration DateNo Automatic renewalsMust leave copy with principleMust retain copy for 3 yearsNet Sheet not required, but recomended

Must be in writing to enforce commissionDeed has names of all ownersDeed does not prove ownershipShowing PropertyClutterCleanStaging LightsSmellsPetsCookiesAction fans runningSecurity Marketing propertyMLSWebsitesRealtor.comTrulia.comOther agentsCaravan Postcard to neighbors Flyer Box - PublisherYard signAgent open housePublic open houseFollow upFollow upFollow up

Presentation of offers to seller

Must present all written offers unless instructed otherwiseGet as much earnest money as possibleNot required for valid offerMust prepare net sheetKeep emotions in check Remember who you are working for

Multiple offersHave other agent present their offerCounter best in primary positionPlace time limit on response

Any mark other than signature voids offer Counter offer is actually a new offer

Forms of Ownership in Real EstateEasy as 1, 2, 31 - One Owner (severalty) severed from othersMarried person may hold property in severalty2 - persons may hold title together as:Joint Tenants with right of survivorship Most likely husband and wifePITT Title passes to other holder upon death of other ownerTenants in common interest may not be equalUpon death title passes to heirs3 Trust 3 partiesTrustor (creates trust) Trustee (holder of title)Beneficiary (benefits from trust)Issues related to conveyance of real propertySeller responsible for delivering marketable titleDeliver property as contracted Title InsuranceDeed must be delivered during Grantors lifetimeAcknowledgement Notarize to record- constructive notice

Buyer must pay purchase price

Fair Housing Protected Classes

FRESH CORN

Familial Status family with childrenRace Civil Rights 1866Equal Opportunity for everyoneSexHandicap includes AIDS

ColorO E&O insurance wont cover violationReligionNationality

Income ApproachInvestor requires a return on money T Formula________Results________ $10,000 Commission Paid Base Rate $100,000 Sales Price .10 (or 10%) Commission Rate Rate is expressed as a decimal

Multiply bottom #s or divide top # by bottom # Base X Rate or Results / Base or Results / RateResults / Base = Rate 10,000 / 100,000 = .10Results / Rate = Base 10,000 / .10 = 100,000Results = Base X Rate 10,000 = 100,000 X .10

XX::::Capitalization Rate = Return on investment T Formula ResultsBaseRateInvestor demands a 10% Return; could be 15% or any numberThis as the Rate in the T Formula - Must change to decimal .10 Rate always goes on bottom rightYou may not get the net income, but be given the numbers to calculate itThe way to calculate net income is GIVEN GI$100,000Gross Income: 100 apartments renting for $1000 per monthV - $5,000Vacancy is 5% (of Gross Income) E - $30,000Expenses are 30% (of Gross Income) N = $65,000Net Income (Before Taxes)

Net income for one month, so multiply by 12 to get annual income = $780,000$780,000 is the Result,(top #) you know the Rate (bottom right #) is .10 you want the Base (bottom left)Divide the Net Income (Results) of $780,000 by the Rate of .10

::X_____________$780,000___________ $7,800,000 .10 Capitalization Rate in this example is 10%

This apartment has a market value of $7,800,000 at a capitalization Rate of 10%

What if it sold for $5,000,000?This means that the market (investors) require a higher rate of return of 15.6% Calculator said 0.156With the T Formula, if you get an answer that look wrong, swap the Base # with the Result # and recalculate7,800,000 / 780,000 would give a rate of return of 1000% and you would know that is wrongRemember to move the decimal point two places to the right to get the percent .10 = 10%

X::Appraisal is an estimate of market valueAppraisers are licensed - 2500 hour trainingAppraisal necessary when:Federally related transactionResidential property above $250,000

Appraisers use verifiable information Allows lender to get independent opinion of value

Inspections are advised in a caveat emptor (buyer beware)Home InspectionSurface look at all systems Many suggest a roofer to evaluate roof is neededNot guaranteed Dont recommend your one and only favorite inspector

Separate inspections not done by home inspectorWood Infestation TermiteSurvey is an inspection of the boundaries Non- ownership interestLeaseInterest of tenantQuiet enjoymentEstate for lifeReversion interest goes back to grantor of estateRemainder man interest goes to another personEasements

Zoning BoardsVarianceChange Flood FEMA.govShelby County sinkholes

What are the fiduciary duties?How does a subdivision get started?What is the name of the subdivision map when it is recorded?Who puts in the streets in a subdivision?What is a hidden defect called?What duty does an agent have to discover latent defects?What if an agent knows about a structural defect?What if the seller tells the agent not to disclose the toxic mold in the basement?What year is the Lead Paint Disclosure required?Can mineral rights be sold separately from the land?What happens to the growing crops when a lease expires?What is the difference between real and personal property?What is a net sheet?Who gets a copy of a net sheet?Who signs a listing agreement?What must a listing agreement have?What are deed restrictions?Can the developer impose restrictions you may not like?What are the different forms of ownership in real property?What are the bundle of rights in real estate? UPEEDWhat are the protected classes in Fair Housing?FRESH CORNCan you discriminate based on credit score?How does the sales comparison approach work?How does the income approach work?What is a capitalization rate?When is an appraisal required?Why is a home inspection needed?If you learn about a latent defect through the inspection, will you need to disclose this to anyone?What is a less desirable ownership than fee simple?If a rental property sells, can the new landlord raise the rent?

What is a period to period tenancy?What is an estate for years?What is a hold over tenancy?What is an estate at sufferance? What is a zoning variance?

Can the city restrict how many people can live in a house?What is a flood zone?Lunch Break 2 Selling PropertyA - Services to the buyerRelationship and responsibilities of the licenseeAgency COLD ACNon-AgencyHARD?

ConsumerCustomerClientRights of OwnershipUPEED

UsePossessionEnjoymentExclusionDispositionTypes of ownershipEasy as 123

Buying powerKeep it simple

Front end debt to income ratio

Income per week = monthly paymentAt 6% interest, each $1000 financed is $6 per month$100,000 loan for 30 years is $600 per monthThis loan requires $600 per week incomeBack end ratio

Payments on recurring debt (car loan)PlusNew mortgage paymentMust be < 36% of incomeBuyer income = $4,000 month

Ratios are .28 income, front, .36 total debt, back4,000 X .36 = $2,400 (total debt allowed)Can qualify for $1,120 monthly house payment 28%Can have $1,280 in other debt paymentsCarCredit CardsOther LoansHow much house payment is allowed for $4,000 monthly income?4000 X .28 = 1,120

How much loan is possible at 6% interestInterest factor of 6Only place numbers match is at 6% and a factor of 6

1120 / 6 = $186,666Closer to the debt ratios, higher the risk (rate)Finance optionsVA 100% Guaranteed by governmentFunding Fee (mortgage insurance) 2-3%FHA down payment of about 3 %Insured (mortgage insurance premium of %) added to rateConventional 80% LTVNot insuredSpecial FinancingBuilderBuy downsClosing CostRuralBondOwnerBalloonEmployer assistanceNACA.com

Pre QualifiedPre Approved Buyer needs & wantsNeed 2 bedrooms, want 3Need Heat, want ACNeed backyard, want big fenced backyardNeed school, want Hoover Schools

Our buyer can get a loan of $186,666Their like the homes priced around $250,000

What can they do?

Current Market Conditions3 Property Management

Trust Accounts FDIC insured bank in Alabama

Financial Statements for Owner

Actual EvictionWhen Tenant breaches leaseLandlord must file suit for possessionServe noticeCourt Landlord may not change locks or turn off utilities

Constructive EvictionWhen landlord breaches leaseTime to comply

Alabama Landlord and Tenant Act

Clauses in Management Agreement

Clause in Lease