Each TREC-approved real estate education program is made up of six courses:
While you can take the courses in any order you wish, we recommend you take them in the order listed above.
Principles I lays out more foundational real estate concepts and Principles II gets into more complex concepts. Aceable recommends you take Principles I after Principles II. Let’s look at what Principles II covers.
Math and Financing
You’ll want to have your calculator ready for Principles II because it covers a lot of math concepts. But don’t worry — Principles II sets you up for success. It starts out with a few basic math principles like:
Then you’ll move on to more complex concepts and equations, such as:
Mortgages and loans
While you won’t be responsible for calculating a client’s exact property taxes, you will need to know how these systems work so you can help guide clients through their potential expenses.
Value is an incredibly important part of real estate. People buy homes because they need a place to live, but they also buy homes (and other properties) because homes have value.
Principles II dives deep into the concept of the value and covers things like the three approaches to value and how to price a property. Read more about low-cost chores that will help improve a property’s value.
Just because you think a property is worth a certain amount of money doesn’t mean other people will agree with you. That’s why appraising is so important. A real estate appraisal is an official valuation given to a property by a licensed appraiser. Principles II covers:
How to become an appraiser
The appraisal process
Your client may be buying a single-family home as an investment or they may be a wealthy investor looking to increase their capital. Principles II goes over the value of investments, syndicates, trusts, and mortgage investment conduits.
Read more about another type of investment: house flipping.
Many apartment complexes and rental properties rely on property managers. Principles II goes into what property managers do, what they’re responsible for, and the contracts that govern them.
Title refers to the actual ownership of real property and the rights associated with ownership. Title is not an actual document but rather a concept — and an extremely important one in the world of real estate. When a property is bought or sold, its title transfers from one person to another.
Closing is the culmination of a real estate transaction. It’s the event at which title actually transfers. Principles II goes over the closing process and covers things like:
How closings are conducted
Principles II also covers ownership and how a title may be limited, restricted, proved, or transferred. You’ll learn about things like:
Evidence of title
Recording a title
Clients will need to understand that they might not be able to use their property any way they want.
Land Use Controls
Principles II gets into environmental protections that may impact an owner’s land-use rights. It also explores public ownership, such as the owners of condominiums and co-ops.
It’s very likely you’ll be working with renters. Leased properties occupy a huge portion of the real estate market. Principles II will set you up for success when it comes to:
How leases affect real estate
Types of leases
One of the most appealing aspects of getting a real estate license is freedom. License holders have more freedom to establish their own hours and earn higher commissions. They also have the freedom to pursue diverse types of property.
Principles II gives an overview of some of the specializations a license holder might be interested in pursuing, such as:
Farm or ranch properties