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The Real Estate Professional’s Handbook
for Starting and Running a Successful Business
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The Real Estate Professional’s Handbook
for Starting and Running a Successful Business Tim A. Baker
PU B L I S H I NG New York
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This publication is designed to provide accurate and authoritative information in regard to the subject matter covered. It is sold with the understanding that the publisher is not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought. Editorial Director: Jennifer Farthing Development Editor: Joshua Martino Production Editor: Julio Espin Typesetting: the dotted i Cover Design: Rod Hernandez © 2007 by Tim A. Baker Published by Kaplan Publishing A Division of Kaplan Inc. All rights reserved. The text of this publication, or any part thereof, may not be reproduced in any manner whatsoever without written permission from the publisher. Printed in the United States of America June 2007 07 08 09
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ISBN 13: 978-1-4277-5466-0 ISBN 10: 1-4277-5466-7
Kaplan Publishing books are available at special quantity discounts to use for sales promotions, employee premiums, or educational purposes. Please email our Special Sales Department to order or for more information, at
[email protected], or write to Kaplan Publishing, 888 7th Avenue, 22nd Floor, New York, NY 10106.
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Contents
6. Introduction
ix
1. What Are You Doing Here, Anyway?
1
2. Who Are You?
9
3. The Real Estate Cycle
15
4. Establishing a Business Plan
25
5. The Calendar and Your Business Plan
39
6. The Business Budget
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7. How You Organize Your Business Will Determine Your Success
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8. Your Marketing Plan
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9. How Much Education Do I Need? 10. Reviewing Your Results
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Contents
11. Your Exit Strategy
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12. The Exit Strategy Questionnaire
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6. Appendix
167
6. Index
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Acknowledgements
T
here have been many individuals who have affected my understanding of my real estate career. One of the first who had an influence on me was Bob Schiller of Schiller Real Estate in Elmhurst, Illinois. He remains a good friend. It was there that I received my first instructions. Schiller Real Estate is still a major player in the real estate business in that area. Many of my friends whom I met there ga