Q11.1-3.4 (57%)

Question 1

Identify info that may be included in a prospective buyer/ tenant rep proposal

Answer 1

· Goals/ timelines/ tasks

· Location/ features/ economic objectives/ site/ soil conditions/ land use/ access/ environmental conditions/ building conditions

· What properties are best suited to the client- review properties based on client criteria/ design build proposals/ includes cap rate and DCF

· Include process for negotiations and offer review in contracts.

· What follow up processes and after sale services are provided.

Question 2

What is commision?(0.6)

Answer 2

Landlord/ Split between listing agent and tenant agent.

Question 3

Expansion

Answer 3

• Demand exceed supply.
  -Prices rise -new construction

Question 4

Recession

Answer 4

Think Receeding- (action word)
More projects completed adding to existing supply.
- Vacancy rates continue to increase.
-Rents fall
- new projects unfeasible.

Question 5

Recovery

Answer 5

-Low prices
-no new construction
-oversupply
- vacancy rates decline
- investors regain confidence in market
-increasing demand.
-Developers explore new projects

Question 6

Hyper Supply

Answer 6

-New projects complete
- supply increases, exceeding demand.
-Vacancy rates increase.

Question 7

Market specialization increases this (06)

Answer 7

Standard of Care

Question 8

Describe how the Weed Control Act impacts commercial properties located in rural settings. (1.)

Answer 8

Owners responsibility to take care of noxious weeds. Any notices will be passed on to the new owner.

Question 9

Identify info that may be included in a buyer/ tenant proposal(1.0)

Answer 9

Objectives and Scope of Work
Search Criteria Location/ site/soil land use/ building conditions
Search/ Analysis Process (includes cap rate and DCF/ may include design build proposal.)
Negotiating and drafting the contract
Closing the transaction

Question 10

Core investment strategy (1.2)

Answer 10

4-7% return/ High quality properties/ stable tenants/ minimal need for improvements/. Example Class A office Building/ Industrial logistic centers with national tenants.

Question 11

Core Plus investment strategy (1.2)

Answer 11

6%-9% return. Same as core, but with upside potential through light improvements/ lease up/ or rent increases. Example well located buildings with short term leases. Properties with minor differed maintenance.

Question 12

Value Add (1.2)

Answer 12

8%-12% Return. Example under performing retail center needing new anchor tenants.

Question 13

Opportunistic (1.2)

Answer 13

12%-20%- Ground up development/ major repositioning. Example repurpose of a campsite into a construction worker campsite

Question 14

Balloon mortgage (0.8)

Answer 14

Big lump at the end. $500/month 5 than $100 000. Most Canadian mortgages are like this, which is why they need to be refinanced.

Question 15

Stand by Loan

Answer 15

Lender makes a commitment but would prefer not to lend.

Question 16

Mezzanine loan

Answer 16

Loan between bank loan and equity (owners’ cash) (Mezzanie=middle+more riske=more return).

Question 17

Fixed Rate

Answer 17

Higher in the beginning more $ goes to the bank prime rate of Canada or Gov of Canada Treasury Bond. Typically higher thahn variable rate.

Question 18

Variable Rate

Answer 18

Rate usually tied to bank prime rate of Canada or gov of Canada treasury bond. Typically, lower than fixed rate.

Question 19

Equity participation loan

Answer 19

lender receives a % of capital appreciation at the time of sale. Sometimes a percentage of cash flow based on performance of asset.

Question 20

Stand By loan

Answer 20

Lender makes a commitment but would prefer not to lend.

Question 21

Describe the information in an activity report

Answer 21

what has been agreed upon between the licensee and the client. While it can include financial details, it typically offers a high-level overview of leasing activities rather than in-depth financial analysis.

Question 22

Determine how to devalop a marketing plan that includes objectives,, action items and success indicators. (06)

Answer 22

What target markets and specific promotional activities are planned.
* -Analysis of primary and secondary markets for promotion
* -ID major features and benefits of the property
* -Collection of photos, maps and site plans
* -Development of an offering statement for promo purposes
* -Selection of specific promo methods and techniques such as brochures, mailings, news releases, signs, online promotion, an dnewspaper/ trade magazine advertising

Question 23

Describe different ways licensees may promote themselves (0.6)

Answer 23

Prospecting- warm calls and cold calls
Generate a personal list of contacts
Effective mailers are designed to pave the way for personal contact. When follow-up occurs, having the mailer to refer to is advantageous. Newsletters can also be powerful marketing pieces with the right background knowledge and depth of information collected. Supplement that knowledge with business-related publications, newsletters, online and classroom courses, and anything else that will expand your sector and market knowledge.
Maintain a strategy of regular contact within the market, not only for obtaining listings, but also for referrals and repeat business. The depth of knowledge gained is invaluable when preparing marketing proposals.

Question 24

Describe means prospective clients may contact a licencsee (0.8)

Answer 24

Most initial contacts take place over the telephone and are triggered by advertisements, signs, or targeted mailings.
* Targeted audiences have been identified in the marketing proposal and presumably letters have been forwarded.

Question 25

How to execute target marketing

Answer 25

- User location- concentric circles from the property - User type- type of tenants best suited for the property. Same market segment. land use classification and applicable bylaws. - Identify best suited tenant

Question 26

How do you ensure marketing materials demonstrate due care, accuacy, clarity and throroughness (0.8)

Answer 26

****Make sure marketing contains Tenant incentives ** Length of lease** * Size of the premise available for lease** (floor plate)** *** Rental and operating cost *** Occupancy availability** *** Parking ratio** * Amenities * Area demographics * Property Details ** * Legal and municipal address/ location maps/ land use classification** * Floor plan/ site plan * Construction and building system specs * Property improvements.

Question 27

(.06) Justify marketing material, design and graphic element choices.

Answer 27

AIDA formula: Attention, interest, desire and action. Effective headings and promotional copy to attract the attention and interest of prospect clients.

Question 28

Explain purpose of a marketing brochure (0.4)

Answer 28

It is used to quickly communicate key information about the property to prospective tenants in a visually compelling manner.

Question 29

Outline how to gather property info. (1.0)

Answer 29

* Copy of title * Documents outlineing existing lease agreement provisions * Copy of the stacking plan, * Copy of the landlords standard lease and offer to lease * Site plan for property * Copy of the operating costs breakdown * Floor plan for the premises to be leased. Before meeting with the landlord, take the time to familiarize with the property. physically go down to the property, take note of: -Overall physical condition -Names and industries of tenants in the building -who the current tenants /image the landlord is trying to portray to the market. (image helps you identify prospective tenants.) -understand all applicable bylaws affecting the property’s use. -Review personal database.

Question 30

Identify the info included in a listing proposal for prospective seller landlords (.08)

Answer 30

* Commitment to professionalism- (brokerage and professional biagrophy, explanation of the leasing process, testimonials from previous clients) * Current situation-market info, comparable lease transactions, comparable properties, description of tenants to be targeted. * Leasing strategy- competitive positioning of property, proposed rent amounts based on comps, suggested incentives, drafts of proposed marketing materials, an outline of marketing campaign * Representation relationship parameters. * Listing proposals vary widely and can range from a brief two-page letter to a 20 page or more professionally designed and printed booklet that accompanies a formal presentation.

Question 31

Explain the purpose of a marketing campaign (.08)

Answer 31

Market the property to as many people as possible in the shortest time possible.

Question 32

Determine how to best manage time respecting all parties (0.8)

Answer 32

- do not squander it with generalities. - have probing questions or comments to steer the conversation in a way that will help you to better understand the seller’s needs. -Adapt your questions to the landlord’s level of knowledge. Many landlords are quite knowledgeable about real estate matters. Asking a sophisticated landlord questions to learn information you could easily obtain through other means or that demonstrate you are not prepared may result in the landlord doubting your ability to competently represent them

Question 33

Outline technique and processes licences use to determine, clarify and confirm a seller client’s showing directions and protocol. (0.8)

Answer 33

Before the first tour, obtain all required keys, access cards, and/or access codes necessary to enter the building and premises to be leased. If there are onsite security personnel or a building operator, ask landlord to provide contact information so they can also be advised a tour is taking place. . check with the landlord if they require any specific (safety) practices to be followed. -Provide sufficient information to potential buyers to review in advance of a showing -Bring necessary supporting documentation to answer questions -Explain any limitations associated with the showing -If property is not suitable, continue to qualify clarity on the client’s needs and wants -Confirm client is the decision maker

Question 34

Determine how to maintain and increase value for clients and prospects (1.0) (Business Sense)

Answer 34

A situation assessment uses all the information you have gathered about the landlord, premises, and property to help you identify relevant facts for developing a successful leasing strategy. It demonstrates the value you bring to the landlord The situation assessment includes: * -Identifying potential tenants * Completing a strengths, weaknesses, opportunities, and threats (SWOT) analysis * -Identifying the property's unique advantage * -Identify issues to overcome

Question 35

Outline how to determine areas of competitive advantage (.08) (Business Sense)

Answer 35

Internal Strenghts and external opportunities. * -Technology (high capacity Hvac and Electrical) * -Sustainability( Building certified under a green program) (nearby farmers market) * -Client and Industry (near to suppliers, signage rights for tenants) * Fitness and Leisure * -Family (nearby dacare) * -Transportation and Access * -Convenience. (nearby restaurants and residential areas) Other competitors weakness may also be a sign of competitive advantage.

Question 36

Preliminary Research includes

Answer 36

reviewing personal database for info.

Question 37

R/U factor is known as

Answer 37

effeciency factor. = Remab;e area% usable area.

Question 38

Weather or not a property qualifies as an investment depends on

Answer 38

Buyer intenstion

Question 39

users typically refers to what type of property

Answer 39

amenity/ location.

Question 40

List 4 type of risks in commercial real estate.

Answer 40

1.Market 2. Systemic (Tax Tariffs) 3. Asset risk (structural damage.) 4. Enterprise level risk- change of owners.

Question 41

Define Range

Answer 41

The maximum distance a custoemr will travel to seek the service.

Question 42

What info should you get from tenants prior to a tour.

Answer 42

- their needs -ownership structure -names of decision makers. -mission and visiou statement -core values -length of time in operation

Question 43

Personal Business Strategy

Answer 43

Keep a relationship with and a data base of potenantal tenants and landlords to lower the chances of being rejected in the future if you need to reach out to them.