January/February 2013 Frontrunner

REAL ESTATE

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MORTGAGE

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APPRAISAL

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INVESTMENT

frontrunner SCHOOL www.HoganSchool.com

4023 East Grant Road ● Tucson, AZ 85712 520/327-6849 ● 800/794-1390 info@hoganschool.com

JANUARY /FEBRUARY 2013

Tax Lien Investing Learn how it’s done from an expert with years of experience If you've got some investment dollars sitting in a bank account at low interest rates, maybe it's time to re-think your investing strategy. Tax liens offer a high return on investment, without management hassles.

If you haven't taken the time to investigate property tax liens as an investment, you need to, NOW! Stop following the crowds.

With a little education from Jim Hogan you'll wonder why you haven't been buying tax liens for great returns.

Pima County Tax Lien Sale: February 2013

Thursday, January 24, 2013 9am - 11:50am Thursday, February 14, 2013 9am - 11:50am Tuition: $35 3 hours RE Legal Issues credit

Renewal Class Schedules on Pages 5 thru 11

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Š2013 Hogan School of Real Estate

January/February 2013

Property Management Classes Leasing for Single Family Homes Just starting out in Property Management?

Do you already work in Property Management and need some guidance? Are you an experienced Property Manager and want to stay up to date on current events and topics?

This class is designed for the person just beginning the property management of single family homes, someone thinking about getting involved in property management and the experienced single family home or other property manager. Although the material is designed with the inexperienced property manager in mind, it will serve as a good review for experienced property managers. The experienced property manager will also learn alternative approaches and best practices to incorporate into his/her practice. This course covers:

• • • • • • •

Marketing the property for rent The application Processing the applications Leasing preparation Lease signing Lease renewals And more. . .

Landlord Tenant Law (Basic & Intermediate Levels) This class is based on the Arizona Residential Landlord and Tenant Act A.R.S. §33-1301 to 33-1381 and covers the following topics:

• Legislative update: Review of recent changes in • • • • • • • • • • •

the law What law applies and when?

Review of residential, commercial, mobile home, recreational vehicles and other laws Best legal advice to landlords and property managers General guidelines for doing business Requirements of the Arizona Residential Landlord/Tenant Act Where to spend your time/money as a landlord How to handle common tenant problems Rental Agreements Lease vs. month-to-month agreement Lease with Option to Purchase vs.

Lease Purchase Agreement Preparation of forms such as: tenant application, property inspection sheet, notice to terminate, 5-day notice, 10-day notice and more.

• Anatomy of an eviction CARLTON C. CASLER, ESQ.

STEVE SCHULTZ, RMP® Steve is the Designated Broker for Blue Fox Properties and is actively involved in the property management business every day. Blue Fox Properties specializes 100% in the property management of single family homes, condominiums and townhouses. Steve is 1 of only 15 people in the state of Arizona to hold the Residential Management Professional (RMP®) designation from the National Association of Residential Property Managers (NARPM®). He will serve as the President of the NARPM® Southern Arizona Chapter in 2013 and currently serves as the President-Elect.

Perhaps most importantly, he is also a landlord and real estate investor.

Attorney at Law • Owner of the CASLER LAW OFFICE • Owner of the CASLER SCHOOL OF REAL ESTATE • Licensed Arizona Real Estate Broker • Author of real estate books and reference guides; One of the leasing authorities on Landlord/Tenant law in Arizona Education: Juris Doctorate, May 1990 • Arizona State University, College of Tempe, Arizona • Bachelor of Science, Business Administration, June 1984; Hawaii Pacific College, Honolulu, Hawaii • Grade Average: 4.0 (on 4 point scale) Honors: Valedictorian; Summa Cum Laude • Dean’s List • Listing in Who’s Who Among Students in American Universities & Colleges, 1984

Friday, January 25, 2013 9am - 11:50am

Friday, February 1, 2013 1pm - 3:50pm

$25.00

$25.00

Receive 3 hours of Contract Law credit

Receive 3 hours of RE Legal Issues credit

January/February 2013

©2013 Hogan School of Real Estate

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How to Find the Right Property Management Company

by Steve Schultz I'm not a big believer in the "one size fits all" approach to anything, but especially when it comes to property management services for single family rental homes. I believe you need to find a company that fits what is important to you. In my company, I speak with a lot of prospective clients that are looking for property management services. In doing so, I can tell you the two most frequently and first asked questions. But they really are not the correct questions to ask because their answers do not lead the person asking them to the correct conclusion. So here are the two most common questions and some discussion about the alternative questions that

provide more information and that will help the person asking them make a better decision.

1. How much do you charge?

This question is asked so frequently and without second thought by the person asking, I have come to loathe this question. The underlying assumption in asking this question is that all property managers have exactly the same skill level, knowledge, experience, systems and scope of services such that the only distinguishing variable is the amount they charge for their services. However, this could not be further from the truth. In the case of shopping for a widget with exact specifications, this may be closer to the truth. But even then I would argue you should consider other variables including delivery date, customer service, return policy, and other factors before calling it equal. I mean, who would you rather buy the exact same watch from, the guy on the street who opens up his trench coat and asks you for your selection, or a known retailer that will stand behind your purchase with a solid "no hassle" return policy and a "no cost" service department should your watch need to be repaired? A much better question to ask is "What services do you provide?" Then later in the conversation, you can ask about the corresponding fees so you can decide if the two match based on your expectations. Another question that you need to ask yourself is, "Does this property management company's fee structure align with my interests as a property owner?" Although some things may seem reasonable on the surface, take a closer look and they may not be in your best interest. For example, there are companies that make more money when the tenants turn over than when the tenants stay in the property long term.

2. What is your vacancy rate?

I've come to the conclusion that this must be in all the best selling investor books about how to find a good property manager. I've read most of those books and I can tell you I have seen it in most of the books I have read. Although it makes sense for apartment complexes, it doesn't really apply to the single family home market for a couple reasons. First of all, any single family home is either 0% occupied or 100% occupied. Secondly, the vacancy rate of a portfolio of any property management company will vary based on where the bulk of their properties are located, how slow or fast the company is growing, the time of year, the make-up of that particular property management company's portfolio, and many other variables. The better questions to ask is, "How long do you think it will take you to rent my house?" This can be determined based on Multiple Listing Service statistics and using rental comparables for your specific house. If someone can't show you specific data for your rental property, it's simply an educated (hopefully) guess.

So the next time you go shopping for a property management company, I hope you keep these alternative questions in mind. I encourage you to take the time to find the company that is the right fit for you. It will lead to a positive experience for you and a long term relationship with your property management company.

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Š2013 Hogan School of Real Estate

JanuaryFebruary 2013

_ R E N E W AT H O N S_

for Designated, Delegated or Self-Employed Brokers

January 2013 Renewathon Wed Jan 16, 2013

BMC #1 - Statutes & Rules

9am - 11:50am

George Jenson

3 Commissioner’s Standards

Thu Jan 17, 2013

BMC #2 - Broker Policies

9am - 11:50am

Jim Hogan

Wed Jan 23, 2013

BMC #3 - Supervision

9am - 11:50am

Jim Hogan

3 Commissioner’s Standards

Mon Jan 28, 2013

1031 Tax Deferred Exchanges in Today’s Market

3 RE Legal Issues

11am - 1:45pm

Brad Horton

Mon Jan 28, 2013

What’s Fair is Fair

2:30pm - 5:15pm

Brad Horton

Tue Jan 29, 2013

Understanding Water Availability, Use & Law

8am - 10:45am

William DeStefano

Tue Jan 29, 2013

Out of the Line of Fire: Avoiding Professional Liability

11am - 1:45pm

Thomas Stoops

Tue Jan 29, 2013

So You Want to Sell Land

2:30pm - 5:15pm

Brad Horton

3 Commissioner’s Standards

Wed Jan 30, 2013

From Contract to Closing

3 Contract Law

8am - 10:45am

Betsy Branyan

Wed Jan 30, 2013

Seller Financing & the AAR Contract

11am - 1:45pm

Richard Koevary

3 Commissioner’s Standards

3 Fair Housing 3 Disclosure 3 Contract Law

3 Agency Law

February 2013 Renewathon Thu Feb 14, 2013

BMC #1 - Statutes & Rules

1pm - 3:50pm

Richard Koevary

3 Commissioner’s Standards

Tue Feb 19, 2013

BMC #2 - Broker Policies

9am - 11:50am

Jim Hogan

Fri Feb 22, 2013

BMC #3 - Supervision

9am - 11:50am

Jim Hogan

3 Commissioner’s Standards 3 RE Legal Issues

3 Commissioner’s Standards

Mon Feb 25, 2013

Avoiding Capital Gains & Recapture Tax

8am - 10:45am

Mark Valentine, Esq.

Mon Feb 25, 2013

“Work Shopping” the Rules - NEW CLASS

11am - 1:45pm

Jim Strong

3 Commissioner’s Standards

Mon Feb 25, 2013

Agency: Duties, Responsibilities & Disclosure

3 Agency Law

2:30pm - 5:15pm

Richard Koevary

Tue Feb 26, 2013

Valuing Residential Property Using Appraisal Techniques

8am - 10:45am

Michael Ashurst

Tue Feb 26, 2013

Risk Reduction: Avoiding E & O Claims

11am - 1:45pm

Lisa Robinson

Tue Feb 26, 2013

Fair Housing Do’s & Don’ts

2:30pm - 5:15pm

Dan Carapellucci

Wed Feb 27, 2013

Bullet Proof Contracts

8am - 10:45am

Mike Monroe, Esq.

January/February 2013

©2013 Hogan School of Real Estate

3 General 3 Disclosure 3 Fair Housing 3 Contract Law

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JANUARY 2013

SALESPERSON’S RENEWATHONS 5 EVENINGS + 3 DAY CLASSES – Does NOT include Broker Management Clinic Tue Jan 15, 2013

Successfully Selling HUD Homes

6pm - 8:50pm

Cheryl Terpening ABR, CRS, GRI

3 Contract Law

Thu Jan 17, 2013

Agency: Duties, Responsibilities & Disclosure

6pm - 8:50pm

Richard Koevary

Tue Jan 22, 2013

Foreclosures, Trustee Sales, Short Sales and Deficiencies

6pm - 8:50pm

Timothy Resnick, Esq.

Thu Jan 24, 2013

Fair Housing Do’s & Don’ts

6pm - 8:50pm

Dan Carapellucci

Mon Jan 28, 2013

Beginning Residential Real Estate Investment

8am - 10:45am

George Jenson

Mon Jan 28, 2013

1031 Tax Deferred Exchanges in Today’s Market

11am - 1:45pm

Brad Horton

Tue Jan 29, 2013

So You Want to Sell Land

2:30pm - 5:15pm

Bob Benedon

3 Commissioner’s Standards

Tue Jan 29, 2013

The 4 Sides of Disclosure

3 Disclosure

6pm - 8:50pm

Jim Strong

3 Agency Law 3 RE Legal Issues 3 Fair Housing 3 General 3 RE Legal Issues

3 Day Renewathon – Does NOT include Broker Management Clinic Mon Jan 28, 2013

Beginning Residential Real Estate Investment

8am - 10:45am

George Jenson

3 General

Mon Jan 28, 2013

1031 Tax Deferred Exchanges in Today’s Market

11am - 1:45pm

Brad Horton

Mon Jan 28, 2013

What’s Fair is Fair

2:30pm - 5:15pm

Brad Horton

Tue Jan 29, 2013

Understanding Water Availability, Use & Law

8am - 10:45am

William DeStafano

Tue Jan 29, 2013

Out of the Line of Fire: Avoiding Professional Liability

11am - 1:45pm

Thomas Stoops

Tue Jan 29, 2013

So You Want to Sell Land

2:30pm - 5:15pm

Bob Benedon

3 Commissioner’s Standards

Wed Jan 30, 2013

From Contract to Closing

3 Contract Law

8am - 10:45am

Betsy Branyon

Wed Jan 30, 2013

Seller Financing & the AAR Contract

11am - 1:45pm

Richard Koevary

3 RE Legal Issues 3 Fair Housing 3 Disclosure 3 Agency Law

3 Contract Law

*Indicates approved for Appraisal Continuing Education credit.

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©2013 Hogan School of Real Estate

January/February 2013

FEBRUARY 2013

SALESPERSON’S RENEWATHONS 5 EVENINGS + 3 DAY CLASSES – Does NOT include Broker Management Clinic Thu Feb 7, 2013

Disclosure & Risk Reduction

6pm - 8:50pm

George Jenson

Tue Feb 12, 2013 6pm - 8:50pm

* Private Water Wells

3 Disclosure 3 RE Legal Issues

Gary L. Hix, R.G., CWD/PI

Tue Feb 19, 2013

Solving Short Sales & REO Contract Issues

6pm - 8:50pm

Cheryl Terpening ABR, CRS, GRI

Thu Feb 21, 2013

Fair Housing: Do’s & Don’ts

6pm - 8:50pm

Dan Carapellucci

Mon Feb 25, 2013

Avoiding Capital Gains & Recapture Tax

8am - 10:45am

Mark Valentine, Esq.

Mon Feb 25, 2013

“Work Shopping” the Rules - NEW CLASS

11am - 1:45pm

Jim Strong

3 Commissioner’s Standards 3 Agency Law

Tue Feb 26, 2013

Agency Law: Understanding Its Protections for Today’s Agents

6pm - 8:50pm

Timothy Remick, Esq.

Wed Feb 27, 2013

RESPA & Loan Fraud: What You Don’t Know Can Hurt You

11am - 1:45pm

Ashira Davis

3 Contract Law 3 Fair Housing 3 RE Legal Issues

3 RE Legal Issues

3 Day Renewathon – Does NOT include Broker Management Clinic Mon Feb 25, 2013

Avoiding Capital Gains & Recapture Tax

8am - 10:45am

Mark Valentine, Esq.

Mon Feb 25, 2013

“Work Shopping” the Rules - NEW CLASS

11am - 1:45pm

Jim Strong

3 Commissioner’s Standards 3 Agency Law

Mon Feb 25, 2013

Agency: Duties, Responsibilities & Disclosure

2:30pm - 5:15pm

Richard Koevary

Tue Feb 26, 2013

Valuing Residential Property Using Appraisal Techniques

8am - 10:45am

Michael Ashurst

Tue Feb 26, 2013

Risk Reduction: Avoiding E & O Claims

11am - 1:45pm

Lisa Robinson

Tue Feb 26, 2013

Fair Housing: Do’s & Don’ts

2:30pm - 5:15pm

Dan Carapellucci

Wed Feb 27, 2013

Bullet Proof Contracts

8am -10:45am

Mike Monroe, Esq.

Wed Feb 27, 2013

RESPA & Loan Fraud: What You Don’t Know Can Hurt You

11am -1:45pm

Ashira Davis

3 RE Legal Issues

3 General 3 Disclosure 3 Fair Housing 3 Contract Law 3 RE Legal Issues

* Indicates approved for Appraisal Continuing Education credit.

January/February 2013

©2013 Hogan School of Real Estate

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JANUARY 2013 CONTINUING EDUCATION HOGAN SCHOOL OF REAL ESTATE, INC. z 4023 EAST GRANT ROAD, TUCSON, AZ 85712 (520) 327-6849 z (800) 794-1390 z FAX (520) 325-8950 z www.hoganschool.com For salespersons, 24 hours are presently required for renewal. 3 hours Agency Law, 3 hours Commissioner’s Standards, 3 hours Contract Law, 3 hours Disclosure, 3 hours Fair Housing, 3 hours Real Estate Legal Issues (Legal Issues) PLUS 6 hours in ANY CATEGORY as long as it is NOT the exact same course. The Real Estate Department allows licensees to take a maximum of 9 hours in one 24-hour period.

Designated, self-employed and delegated brokers are required to attend a 9-hours of Broker Management Clinic with every two year renewal for a total of 30 hours.

Pre-Registration discount now available: You may pre-pay and register for your renewal classes and receive the following discount: 30 hours - $220 z 27 hours - $200 z 24 hours - $175 z 21 hours - $150 z 18 hours - $135 15 hours - $115 z 12 hours - $90 ** Indicates Excluded from the Prepaid Packages. * Indicates Approved for Appraisal Continuing Education credit.

Jan 15 Tue 6PM - 8:50PM

Successfully Selling HUD Homes This course is a detailed look at the HUD process and how to provide assistance to buyers.

Cheryl Terpening ABR, CRS, GRI 3 Contract Law $25.00

Jan 16 Wed 9AM - 11:50AM

BMC #1 - “Statutes & Rules” Designated, delegated and self-employed brokers are required to take this course every two years and new brokers prior to license activation.

George Jenson 3 Commissioner’s Standards $25.00

Jan 17 Thu 9AM - 11:50AM

BMC # 2 - “Broker Policies” Designated, delegated and self-employed brokers are required to take this course every two years and new brokers prior to license activation.

Jim Hogan, DREI 3 Commissioner’s Standards $25.00

Jan 17 Thu 6PM - 8:50PM

Agency: Duties, Responsibilities & Disclosure This course will have real estate professionals understanding their fiduciary duties to their buyers and sellers.

Richard Koevary 3 Agency Law $25.00

Jan 22 Tue 6PM - 8:50PM

Foreclosures, Trustee Sales, Short Sales and Deficiencies This class will instruct agents on the intricacies of foreclosures, trustee sales, forfeitures, short sales and the consequent issues of deficiences and taxes.

Timothy Remick, Esq. 3 RE Legal Issues $25.00

Jan 23 Wed 9AM - 11:50AM

BMC #3 - “Supervision” Designated, delegated and self-employed brokers are required to take this course every two years and new brokers prior to license activation.

Jim Hogan, DREI 3 Commissioner’s Standards $25.00

Jan 24 Thu 9AM -11:50AM

How to Buy Tax Liens Imagine acquiring properties for a small fraction of their value. Learn every aspect from an expert.

Jim Hogan, DREI 3 RE Legal Issues $35.00

Jan 24 Thu 6PM - 8:50PM

Fair Housing: Do’s & Don’ts This class will assist licensees and their clients in dealing with today’s complex Fair Housing issues by familiarization with Fair Housing laws and application.

Dan Carapellucci 3 Fair Housing $25.00

Jan 25 Fri 9AM - 11:50AM

Leasing for Single Family Homes This class is designed for both the person just beginning and the experienced property manager currently managing single family homes.

Steve Schultz 3 Contract Law $25.00

Jan 28 Mon 8AM - 10:45AM

Beginning Residential Real Estate Investment This is an introduction to the rudiments of investment in smaller (1-4 unit) residentail properties. Learn how to analyze both “buy, fix-up & sell” as well as “buy and hold” investment opportunities.

George Jenson 3 General $25.00

Jan 28 Mon 9AM - 3:50PM

Intro Contract Writing Learn how to write listings and purchase contracts. Mandatory for new agents for license activation.

Jerri Szach 6 (3 Contract Law/ 3 RE Legal Issues) $50.00

Jan 28 Mon 11AM - 1:45PM

1031 Tax Deferred Exchanges in Today’s Market Identifies the parties involved in exchange transactions and the role of each.

Learn the 11 rules regarding exchanges.

Brad Horton 3 RE Legal Issues $25.00

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©2013 Hogan School of Real Estate

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January/February 2013

Jan 28 What’s Fair is Fair Mon Familiarize and enhance the real estate licensee’s knowledge of the Federal 2:30PM - 5:15PM Fair Housing Act, their responsibilities and the penalties.

Brad Horton 3 Fair Housing $25.00

Jan 29 Tue 8AM - 10:45AM

Understanding Water Availability, Use & Law Learn what to do as a real estate professional on water knowledge and how to better serve the needs and wants of your clients.

William DeStefano 3 Disclosure $25.00

Jan 29 Tue 11AM - 1:45PM

Out of the Line of Fire: Avoiding Professional Liability Learn to identify duties when acting in a fiduciary relationship. Specific Arizona case law will be discussed. Broker liabilities will be discussed and attendees will be able to identify potential liability issues.

Thomas Stoops 3 Agency Law $25.00

Jan 29 So, You Want to Sell Land?

Tue Bob will aid you in locating the property, determining value, anticipating and solving 2:30PM - 5:15PM problems, and effectively market a parcel of land.

Bob Benedon, ALC CCIM 3 Commissioner’s Standards $25.00

Jan 29 Tue 6PM - 8:50PM

The 4 Sides of Disclosure Learn to identify disclosure obligations, common material facts warranting disclosure, and common “red flags.”

Jim Strong 3 Disclosure $25.00

Jan 30 Wed 8AM - 10:45AM

From Contract to Closing This class will emphasize seller, buyer and agent responsibilities during the process of executing a contract and converting it into a successful closing.

Betsy Branyan 3 Contract Law $25.00

Jan 30 Wed 11AM -1:45PM

Seller Financing & the AAR Contract This course intends to awaken agents’ interest in seller financing and show them how it can be a win-win solution for all parties. The AAR Residential Purchase Agreement and the AAR Assumption/Carryback addendum are used as the basis for this course with extensive discussion on all aspects of the forms.

Richard Koevary 3 Contract Law $25.00

When coming to class is just too inconvenient...

TAKE HOGAN’S ONLINE CE! Hogan’s online renewal classes designed for AZ Licensees

by AZ experts on AZ topics.

At your convenience and with the click of your mouse, you will experience the same quality education with fun and flair that only Hogan School can deliver. So what are you waiting for? Grab a cup of coffee, learn and enjoy the experience! We’re ready when you are - your Renewal Hours are waiting.

www.HoganSchool.com 24 hour Package (Broker* or Salesperson) $135 *Designated, delegated and self-employed brokers must take an additional 6 hours of Broker Management Clinics for a total of 30 hours.

These hours are not offered online.

18 hour Package $105 Individual 3 hour Classes $25 • Broker Management Clinic #1 - Statutes & Rules • Green Real Estate • Code of Ethics with Case Studies • Litigation in Real Estate • Contract Law with Case Studies • Short Sales & REO Properties • Dealing with the Multi-Cultural Client • Surviving Litigation in Real Estate • Disclosure: Road Map for Real Estate • Top 10 Disclosure Issues • Fair Housing Compliance • Financial Issues in Contract Writing January/February 2013

©2013 Hogan School of Real Estate

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FEBRUARY 2013 CONTINUING EDUCATION HOGAN SCHOOL OF REAL ESTATE, INC. z 4023 EAST GRANT ROAD, TUCSON, AZ 85712 (520) 327-6849 z (800) 794-1390 z FAX (520) 325-8950 z www.hoganschool.com For salespersons, 24 hours are presently required for renewal. 3 hours Agency Law, 3 hours Commissioner’s Standards, 3 hours Contract Law, 3 hours Disclosure, 3 hours Fair Housing, 3 hours Real Estate Legal Issues (Legal Issues) PLUS 6 hours in ANY CATEGORY as long as it is NOT the exact same course. The Real Estate Department allows licensees to take a maximum of 9 hours in one 24-hour period.

Designated, self-employed and delegated brokers are required to attend a 9-hours of Broker Management Clinic with every two year renewal for a total of 30 hours.

Pre-Registration discount now available: You may pre-pay and register for your renewal classes and receive the following discount: 30 hours - $220 z 27 hours - $200 z 24 hours - $175 z 21 hours - $150 z 18 hours - $135 15 hours - $115 z 12 hours - $90 ** Indicates Excluded from the Prepaid Packages. * Indicates Approved for Appraisal Continuing Education credit.

Feb 1 Fri 1PM - 3:50PM

Landlord-Tenant Law (Basic & Intermediate Level) Gain basic and intermediate knowledge of the Arizona landlord-tenant law and recent legislation related to the act.

Carter C. Casler, Esq. 3 RE Legal Issues $25.00

Feb 7 Thu 1PM - 3:50PM

Introduction to Property Management For both the new and experienced property manager, this course will inform you of many items to be considered and addressed in property management.

Steve Schultz & Debbie Hightower 3 General $25.00

Feb 7 Thu 6PM - 8:50PM

Disclosure & Risk Reduction This course includes detailed discussions on the problems agents encounter, the disclosures that needs to be made to consumers and risk reduction strategies that benefit consumers and real estate licensees.

George Jenson 3 Disclosure $25.00

Feb 8 2012-2013 USPAP Update Course Fri Protect yourself and your business. By law, all real estate appraisers must comply 8:30AM - 4:30PM with the USPAP regulations. Arm yourself with the standards you need to ensure adherence to the law.

Feb 12 Tue 6PM - 8:50PM

**

Private Water Wells * Gary’s class covers both private and shared water wells that are inspected and tested during sales and transfers of real property. He presents a broad collection of relevant issues and must-know facts for real estate professionals and appraisers.

Roy Morris 6 General $250.00 Gary L. Hix, R.G., CWD/PI 3 RE Legal Issues $25.00

Feb 14 Thu 9AM -11:50AM

How to Buy Tax Liens Imagine acquiring properties for a small fraction of their value. Learn every aspect from an expert.

Feb 14 Thu 1PM - 3:50PM

BMC #1 - “Statutes & Rules” Designated, delegated and self-employed brokers are required to take this course every two years and new brokers prior to license activation.

Richard Koevary 3 Commissioner’s Standards $25.00

Feb 19 Tue 9AM -11:50AM

BMC #2 - “Broker Policies” Designated, delegated and self-employed brokers are required to take this course every two years and new brokers prior to license activation.

Jim Hogan, DREI 3 Commissioner’s Standards $25.00

Feb 19 Tue 6PM - 8:50PM

Solving Short Sales & REO Contract Issues Increase your knowledge of short sales and REOs so you can better communicate the risks involved in working with these properties.

Cheryl Terpening ABR,CRS,GRI 3 Contract Law $25.00

Feb 21 Thu 6PM - 8:50PM

Fair Housing: Do’s and Don’ts This class will assist licensees and their clients in dealing with today’s complex Fair Housing issues by familiarization with Fair Housing laws and application.

Dan Carapellucci 3 Fair Housing $25.00

Feb 22 Fri 9AM -11:50AM

BMC #3 - “Supervision” Designated, delegated and self-employed brokers are required to take this course every two years and new brokers prior to license activation.

Jim Hogan, DREI 3 Commissioner’s Standards $25.00

Feb 23 Sat 9AM -3:50PM

Intro Contract Writing Learn how to write listings and purchase contracts. Mandatory for new agents for license activation.

Jim Strong 6 (3 Contract Law/ 6 3 RE Legal Issues) $50.00

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©2013 Hogan School of Real Estate

**

Jim Hogan, DREI 3 RE Legal Issues $35.00

January/February 2013

Feb 25 Mon 8AM - 10:45AM

Avoiding Capital Gain & Recapture Tax Which would benefit you more - a 1031 exchange into a tenant in common property or a self-directed installment sale? Or might it be another option like a CRT, and charitable installment bargain sale or a structured sale?

Mark Valentine, Esq. 3 RE Legal Issues $25.00

Feb 25 Mon 11AM - 1:45PM

“Work Shopping” the Rules - NEW CLASS Gain a renewed understanding of the rules of the AZ Department of Real Estate and why they exist.

Jim Strong 3 Commissioner’s Standards $25.00

Feb 25 Agency: Duties, Responsibilities & Disclosure Mon This course will have real estate professionals understanding their fiduciary duties 2:30PM - 5:15PM to their buyers and sellers.

Feb 26 Tue 8AM - 10:45AM

Richard Koevary 3 Agency Law $25.00

Valuing Residential Property Using Appraisal Techniques Michael Ashurst This course covers the fundamental concepts of “Real Property” value and how they can 3 General be applied to determine residential real estate valuations; this is a practical application $25.00 when agents are representing sellers and buyers in the transactions of Real Property.

Feb 26 Short Sales and Foreclosures: What Real Estate Professionals Need to Know Jim Hogan, DREI Tue Knowing how to help sellers maneuver the complexities of short sales and foreclosure 7 RE Legal Issues 8:30AM - 4:30PM opportunities are not merely good skills. Agents with the proper tools and training ** $99.00 can use these specialty areas to build their business for the long term.

Feb 26 Tue 11AM - 1:45PM

Risk Reduction: Avoiding E & O Claims This course iwill enable the real estate professional to learn about the risks associated with short sales and REOs and the areas of exposure.

Lisa Robinson 3 Disclosure $25.00

Feb 26 Fair Housing: Do’s & Don’ts Tue This class will assist licensees and their clients in dealing with today’s complex Fair 2:30PM - 5:15PM Housing issues by familiarization with Fair Housing laws and application.

Dan Carapellucci 3 Fair Housing $25.00

Feb 26 Tue 6PM - 8:50PM

Agency Law: Understanding its Protections for Today’s Agents Learn the duties and obligations about various types of agency relationships.

Timothy Remick, Esq. 3 Agency Law $25.00

Feb 27 Wed 8AM - 10:45AM

Bullet Proof Contracts Mike will focus on the necessary legal ingredients of an enforceable contract issues by familiarization with Fair Housing laws and application.

Mike Monroe, Esq. 3 Contract Law $25.00

Feb 27 Wed 11AM - 1:45PM

RESPA & Loan Fraud: What You Don’t Know Can Hurt You This course will cover many of the areas where real estate licensees could be violating RESPA and give the licensee direction on how to follow Federal Law in these areas.

Ashira Davis 3 RE Legal Issues $25.00

Short Sales & Foreclosures Resource SFR® Certification Tuesday, February 26, 2013 7 hrs RE Legal Issues credit

8:30am – 4:30pm Tuition - $99

For many real estate professionals, short sales and foreclosures are the new “traditional” real estate transactions. Knowing how to help sellers maneuver the complexities of short sales, as well as help buyers pursue short sale and foreclosure opportunities are not merely good skills to have – they are critical!

The Short Sales and Foreclosures Resource certification, (SFR® ) gives you a road map for understanding how to: • • • •

Counsel sellers facing foreclosures Qualify sellers for short sales Develop a short-sale package Negotiate with lenders

• • • •

Tap into buyer demand Safeguard your commission Limit risk Protect buyers

Becoming SFR Certified: 1. Be a member in good standing of NAR 2. Complete REBAC’s Short Sales and Foreclosure Course 3. Complete three 1-hour Webinars OR complete HAFA Short Sales - U.S. Treasury, Fannie Mae, and Freddie Mac Programs Course OR REO Properties: Responsibilities, Education, and Opportunities for Real Estate Professionals 4. Submit application - $175 application fee (no recurring dues to maintain certification) January/February 2013

©2013 Hogan School of Real Estate

11

Are Short Sales Doomed in 2013?

by Ken Ryan, Long Realty Short Sale Facilitator

There appears to be considerable speculation that the IRS Mortgage Forgiveness Debt Relief Act will not be extended

by Congress prior to its original expiration date of 12/31/2012. I tend to agree with this position; however, there appears to be some kindling this week in Congress regarding this issue to take action.

Just what is the IRS Mortgage Forgiveness Debt Relief Act of 2007?

In simple terms, if you owe a debt to someone else and they cancel or forgive that debt, the canceled amount may be taxable. The Mortgage Debt Relief Act of 2007 generally allows taxpayers to exclude income from the discharge of debt on their principal residence. Debt reduced through mortgage restructuring, as well as mortgage debt forgiven in connection with a foreclosure or short sale may qualify for relief.

I think the real question should be "Does It Really Matter"?

Since I am not an Attorney nor CPA or Financial Advisor, my first response would be to seek advice from one of the above that has knowledge and expertise with this area of tax law. However, in speaking with numerous local real estate attorneys and CPAs, there appears to be a consensus that for a large number of short sale of foreclosure transactions, there may not be any taxable event from the

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IRS even if the IRS Debt Relief Act expires this year. One viewpoint expressed is because Arizona is an Anti-Deficiency State, there may not be any deficiency, therefore there is no debt forgiven, therefore there is no taxable income. Another viewpoint expressed and one I'm most in tune with, is the IRS definition of Insolvency, (different than in bankruptcy), which may cover many short sales or foreclosures. This position is that at the time of the event short sale closing or foreclosure, the property was insolvent and therefore there is no taxable event.

In either case, I do not believe in the event of a foreclosure or short sale, homeowners are going to be automatically faced with paying the IRS large sums of money if the Debt Relief Act is not extended. Our challenge is to counteract all the misleading information that has and probably will continue to be promoted by the various media publications.

I guess the best thing would be to get the Act extended and then everyone can live Happily Ever After!! Good luck.

Ken Ryan is a native Tucsonan with over forty two years in the real estate industry. Twenty nine of those years were as a homebuilder/ developer and fourteen years as an associate broker. Ken was a Branch Manager with Long Realty for eight years and recently semiretired to begin a new position with Long as Long Realty Short Sale Facilitator. In this new position, Ken researches, updates, communicates and trains Long Realty agents regarding short sale programs, issues, solutions and strategies. Ken is the Co-chair of the Short Sale resource Committee for Long and has been a member of the AAR Professional Standards Committee for five years.

Š2013 Hogan School of Real Estate

January/February 2013

APPRAISAL CONTINUING EDUCATION SCHEDULE Appraisers are required to complete 28 hours of education every two years for renewal and a 7-hour USPAP Course must be taken as part of the 28 hours every two years.

Pre-Registration Discount now available: You may and register for your renewal classes and receive the following discount: 24 hours - $175 z 21 hours - $150 z 18 hours - $135 z 15 hours - $115 z 12 hours - $90 ** Indicates Excluded from the Prepaid Packages.

FEBRUARY Feb 12 Tue 6PM - 8:50PM

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January/February 2013

©2013 Hogan School of Real Estate

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Supreme Court is Reviewing the Case of M&I Marshall & Ilsey Bank v. Mueller

By Thomas A. Stoops Stoops, Denious, Wilson & Murray, P.L.C. Recently we wrote an article about the March 20, 2012 decision by the Arizona Court of Appeals, Division One in the case of Helvetica Servicing, Inc., a California corporation fna CRM Venture Law, Inc. dba The Helvetica Group v. Michael S. Pasquan, 1 CA-CV 10-0418. That case held that a construction loan that refinances a purchase money loan qualifies for anti-deficiency protections if (1) the deed of trust securing the loan covers the land the dwelling constructed thereon; and (2) the loan proceeds were in fact used to construct a residence that meets the size and use requirements set forth in A.R.S. § 33-729(A). This Court of Appeals decision was not reviewed by the Arizona Supreme Court. Shortly before the decision in the Helvetica case, the Court of Appeals decided M&I Marshall & Ilsley Bank v. Mueller, 1 CA-CV 10-0804, which addresses some similar issues but arguably takes the anti-deficiency statutes a step further in the direction of consumer protection. In that case, the defendants, the Muellers, purchased a plot of vacant land in Arizona. The Muellers borrowed $444,000.00 from M&I Bank to construct a single family home on the property for their own use. To secure the loan, the Muellers executed a deed of trust with M&I Bank and the construction began on the property. However, several months into construction the Muellers abandoned the property and defaulted on the promissory note. M&I Bank instituted a trustee's sale, and after foreclosing on the property, sued the Muellers for a deficiency judgment. The trial court dismissed M&I Bank's deficiency action, finding that the Muellers were

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entitled to anti-deficiency protections under A.R.S. § 33-814(G).

M&I Bank argued before the Court of Appeals that the Muellers were not entitled to anti-deficiency protection because the home was never constructed on the property and therefore the trust property was never utilized for a single-family home.

Much as the plaintiffs did in Helvitica, M&I Bank relied on the case of Mid Kansas Federal Savings and Loan Association of Wichita v. Dynamic Development Corporation, 167 Ariz., 122, 804 P.2d 1310 to support its argument. In Mid Kansas, the Supreme Court stated that the borrower who was a homebuilder and did not intend to live in the residences being constructed, was not entitled to protection under A.R.S. § 33-814(G), stating commercial residential properties held by the mortgagor for construction and eventual resale as dwellings are not within the definition of properties "limited to" and utilized for "single-family dwellings." "The property is not utilized as a dwelling when it is unfinished, has never been lived in, and is being held for sale to its first occupant by an owner who has no intent to ever occupy the property."

The Court of Appeals distinguished the Mid Kansas case stating that unlike the situation in Mid Kansas where the borrower was a corporation that never intended to occupy the property, the Muellers intended to live in the single-family home upon its completion, and noted that the primary purpose of the Arizona anti-deficiency statutes is to protect "homeowners" from deficiency judgments, not to afford protection to commercial homebuilders. The Court rejected M&I Bank's argument that a person has to physically inhabit the (Continued on next page)

©2013 Hogan School of Real Estate

January/February 2013

Supreme Court Review (Continued from Page 14)

dwelling, and noted that such a holding would create a blurry and artificial line, stating that an individual facing the possibility of foreclosure may camp out in the unfinished home thereby claiming to be "utilizing" the dwelling, and a person who lived in a new home for a day would be entitled to antideficiency protection, whereas someone who had not yet moved in to a newly constructed home, would not be entitled to such protection. In further distinguishing Mid Kansas, the Court of Appeals noted "Our Supreme Court could have simply stated that a property is not "utilized" as a dwelling when it is unfinished. Instead, the Court stated that "Property is not utilized as a dwelling when it is un- finished, has never been lived in, and is being held for sale to its first occupant by an owner who has no intent to ever occupy the property."

In contrast, the Muellers pur- chased the property with the purpose of occupying the dwelling upon completion. The Court of Appeals stated under those circumstances it would

uphold the trial court ruling that the Muellers were entitled to deficiency protection.

As can be seen, this case, if upheld by the Arizona Supreme Court, takes the issue of consumer protection a step farther since it deemphasized two of the factors listed in the court in Mid Kansas, i.e., the property was unfinished and has never been lived in and places its primary emphasis on the fact that the Muellers were not holding the property for sale to its first occupant and as owners intended to occupy the property. While this emphasis may prove to be decisive with the Arizona Supreme Court, one can certainly imagine the Arizona Supreme Court holding that a structure is not utilized as a single-family or single-two family dwelling if the borrower abandons construction before the dwelling is completed. A Petition for Review to the Arizona Supreme Court was filed. The Arizona Supreme Court had the Petition for Review on its agenda for August 28, 2012, but no decision on granting review has been published as of the date of this writing.

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0 4 40 years of Real Estate Education

Jim Hogan, Jenny Hogan-Lizarraga and Esther Hogan

By Jim Hogan The decision was made! I had sold homes for two years and taught real estate for one. I wanted my own business, so opening a real estate school was a natural for someone with a BS degree in Geology. Wasn't it? I needed a location!

I remember driving Tucson's major streets at 10 mph looking for "Space Available" signs. No luck! But on Friday the 13th, my mail said that Pima Mortgage was moving. I knew their space on Swan and Speedway was just right. It was, and Glen Mangels (Greater Arizona Realty) said I could have all 600 square feet of it! That's enough for an office, classroom, restroom and storage area. Wasn't it?

I needed a license!

In those days, real estate schools were licensed by the Arizona Board of Private and Technical Schools. The application was a cinch but the $10,000 bond wasn't. I had to go before the entire board in Phoenix, two of whose members had the biggest schools in Tucson: Ed Ford (Ford Schools) and Morris "Mac" Benisch (Tucson School of Real Estate). That would be no problem. Would it?

I needed students!

I could meet my overhead and bring home enough bacon with 30 students per month. I would teach both day and night classes to keep costs down. The first night class had four students and the day class two. The next month enrollment halved. Two in the evening and one in the morning.

In December we had no students. But one did come in and prepay for class in January. Two days later he called to withdraw because the book looked too hard. I couldn't' let him drop! I'd already spent his tuition. After 45 minutes on the phone, I finally eased his fears. Decreasing enrollment indicates success. Doesn't it?

I needed therapy!

Luckily, caring brokers and agents referred many students who passed the exam with flying colors. So, in 1976 we moved to Grant Road. That was the year Jim Chapman taught his first class for us.

1985 was the year of the big remodel. Our female students of today will never know the thrill of an unheated ladies room in February. Nor will anyone remember that you walked down stairs to get into our office. 1986 brought the Tax Reform Act and from 1987 to 1991, half of Tucson seemed to go bankrupt, move to California, or both. The 1990s through today brought boom times and the biggest bust since the 1930s.

Now it's 2013, our 40th year. WOW! There are so many people to thank. First our staff, Misty and Jenny. They are the BEST! We would be lost without them. Second, our instructors, the finest!! Richard Koevary, Dan Carapellucci, George Jenson, Mike Ashurst and Cheryl Terpening. Your eloquence and dedication are greatly appreciated. Also, kudos to all of our continuing education instructors. We hope that our students appreciate their presentations as much as we appreciate them. And of course I would be remiss not to mention Jim Chapman, who passed away in April 2011. We miss you Jim. Finally, grateful and sincere thanks to you, our students.

Thanks for passing the test, laughing at our jokes, calling when you have questions, and making us a continuing part of your real estate careers. It's impossible to name all of the wonderful students who have contributed to our success but I must acknowledge Patsy Bradley, Judy Murr, Charles Osment, Roy Kalak, Dennis Kesmeister and Ray Michand. From August, 1973, they are the six original Hogan's Heroes.

I know I was a good teacher but was I a good businessman? I knew that brokers would refer students, but I feared contacting and meeting the brokers. That was all too much for a 27-year-old to handle. Wasn't it?

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Š2013 Hogan School of Real Estate

January/February 2013