2 Chapter Ecomomics

2 Chapter Ecomomics - Chapter 2 October 4, 2011 Chapter 2 -...

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October 4, 2011 Chapter 2 - Real Estate Economics In Property Management - Robert Rooks 1 Chapter 2
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October 4, 2011 Chapter 2 - Real Estate Economics In Property Management - Robert Rooks 3 Chapter 2 Real Estate Economics An understanding of Real Estate Economics is helpful and necessary. Economics is the basis for rent raises, purchases, sales and even points the way for successful building projects.
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October 4, 2011 Chapter 2 - Real Estate Economics In Property Management - Robert Rooks 4 Size of The Real Estate Rental Market In California The real estate rental market in California is the third largest industry in California with over $25 billion per year in total revenues. There are over 5.0 million residential rental units and over 12 million renters in the state. With $1,000 Per Month being the average rent for a one bedroom in California ~ with $2,500 a month not being unusual in the more affluent areas.
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October 4, 2011 Chapter 2 - Real Estate Economics In Property Management - Robert Rooks 5 Size of The Real Estate Rental Market In California Nationwide there are over 35 million residential rental units being built each year. The national median rent is $675 per month. It becomes readily apparent that this large, lucrative, contributive industry needs capable managers to insure its continued financially successful existence.
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October 4, 2011 Chapter 2 - Real Estate Economics In Property Management - Robert Rooks 6 Business Cycles Phase II – Prosperity – Peak. Phase I – Expansion – Recovery Phase III Recession (possible depression) D ecline
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October 4, 2011 Chapter 2 - Real Estate Economics In Property Management - Robert Rooks 7 Business Cycles 1. Monetary theories - Changes in money supply. Such as interest rate increases or decreases. The increase or decrease in credit. 2. Savings & Investment theories - Savings that are used for expanded production will eventually lead to over production and recession. Increased levels of investment cannot be maintained indefinitely. 3. Business economy theories - Which are Keynian theories (John Maynard Keynes) say that business cycles are self generating phenomenon, inherent in industrial society.
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October 4, 2011 Chapter 2 - Real Estate Economics In Property Management - Robert Rooks 8 Social Mentalities (1)Warrior mentality - Soldiers, policemen, athletes, etc. (1)Intellectual mentality - writers, lawyers, physicians, white collar workers, etc. (1)Acquisitors mentality - merchants, bankers, landlords, etc. (4) Physical labor mentality - unskilled workers.
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October 4, 2011 Chapter 2 - Real Estate Economics In Property Management - Robert Rooks 9 Social Mentalities fit well with our DISC approach to personality traits and methods of approaching the sale; D = Director A person who likes to direct others. This is the position most erroneously identified with by the individual. The other personality types can be more powerful.
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2 Chapter Ecomomics - Chapter 2 October 4, 2011 Chapter 2 -...

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