OREA Real Estate Math – The Math Skills Required
We offer three courses in Real Estate Math:
Course 1 – Real Estate Math for the OREA Admissions Test and OREA Course 1 – one day – $95
Course 2 – Real Estate Math for the OREA Commercial Real Estate Exam – one day – $95
Course 3 – Real Estate Math for the complete OREA Program – 4 days – $430 + HST – Read on!
Next Toronto Real Estate Math Prep for the complete Orea Program
– Sundays November 4, 11, 18, 25/12 – 9:30 a.m. – 12:30 p.m.
– Taught on the University of Toronto campus
– $430 + HST materials included
When it comes to passing OREA real exams:
Math skills are a necessary, but sufficient condition for passing!
Competency in basic math skills is a requirement to pass both the OREA College Admissions Test, to succeed in the OREA Real Estate College Courses, and as a real estate salesperson or real estate broker.
In order to achieve your Ontario real estate sales license, you are required to pass six exams (three in the pre-registration stage and three in the two year articling stage). Some of these six courses contain real estate math problem solving questions in multiple choice format.
Our course is designed to teach the Real Estate Math that is required and tested for all six of the OREA exams. Therefore, the course will help you prepare for the math component of all six exams – making it far easier for you to learn and pass your six OREA Real Estate College exams. Remember that when you learn the math behind a concept, you also learn the concept!
What Are The Specific Math Skills Required To Become A Real Estate Agent?
The Ontario Real Estate College (OREA) describes the personal skills needed to become a successful real estate agent. Not surprisingly they include:
“Math – basic fundamentals, including multiplication, division, fractions, and percentages”
This is hardly a surprise. In fact “Course 1” is quite “math heavy”. Your success or failure in course 1 will depend on your math skills. One of the four sections is called: “Introduction to Math Skills”.
Introduction To Math Skills is described by OREA as follows:
“… focusing on math and related skills required in a real estate career. Chapter 7 highlights basic calculation skills involving fractions, decimals and percentages including the use of a calculator followed by area, volume and building measurements. Chapter 8 concentrates on mortgage mathematics with particular emphasis on mortgage financing fundamentals including mortgage qualifications and interest rate calculations. The final chapter highlights calculations that arise at various points in the negotiating and closing processes including using capitalization rates, taxation (land transfer tax and real property tax) and adjustments made at closing.”
These real estate math skills establish the prerequisites for the real estate and real estate problem solving questions that appear in later courses. It is interesting that the basic concepts of geometry (areas, volumes, etc.) are included in your real estate math tool box. Knowledge of the basic concepts of geometry is necessary to determine building area measurements.
Examples of Real Estate Math – Commercial Real Estate – Math Skills Required
In addition, to the math covered in course 1, passing the OREA commercial real estate exam requires you to know (at a minimum the following):
– calculation of minimum rents
– calculation of additional rent
– calculation of percentage rents
– determining valuation and cap rates
– total cost of building per square foot
– determining total return, return on equity, leverage and the determination of whether the leverage is positive or negative
– valuation with the direct capitalization method
– Calculation of depreciation (CCA), the undepreciated capital cost (UCC) and recapture
– income vs. capital gain
– and more
Examples of Real Estate Math – Mortgages – Skills Required
– Interest: effective, nominal
– Present and Future Value, term, amortization period, term, early discharge
– Bonus, discounting of mortgages, interest penalties, amortization, blended payments
– monthly payments, compounding frequencies, pre-payment, mortgage buy downs
Many people have forgotten these skills or never had them to begin with. Either way our “Real Estate Math Prep” has been designed to:
First, teach the toolbox of math skills so that you can pass the exam; and
Second, ensure that you are able to apply these skills to solve problems on your OREA real estate exams and in your real estate career!
The Real Estate Math Preparation Course Explained – Purpose and Format
Our course is run in the form of a four day workshop which takes place over four weekends. Homework is assigned after each weekend.
The Four Day Course Format Explained
When it comes to math tests, it is vital that you:
“Know what to do, and
Do what you know!”
The format and focus of each day is:
Days 1 and 2- The Real Estate Math ToolBox – Introducing the “Math ToolBox”
Focus: To enable you to “Know What To Do.”
In order to solve the problems, you are required to be able to apply the math tools which are taught in the “Real Estate Math Toolbox”. Remember that you will NOT be tested on your knowledge of math specifically. Rather, the problem solving questions that you are asked, assume your competence with the basic tools of real estate math and require you to apply those tools in the context of specific problems.
The first two days of our course is designed to teach these basic tools. After the first day you will leave with homework and other reinforcement exercises. The goal is to improve your math skills to the point where you are able to apply those skills and answer the multiple choice problems that assume your knowledge of real estate math. The second day of our course focuses on real estate math problem solving questions.
Days 1 and 2 of our course will also be helpful to those who need a math review in order to pass the OREA College Admissions Test.
Days 3 and 4- Real Estate Math Problem Solving Questions – “The ToolBox Applied”
Focus: To ensure that “You can do what you know.”
Days 3 and 4 will focus on teaching you to:
– understand the real estate math problem solving questions on the OREA Real Estate Exams; and
– apply the skills learned in the “Real Estate Math ToolBox” to the relevant questions on the OREA real estate exams.
Remember that each of the six OREA exams (some more than others) will include some real estate math problem solving questions.
Monthly Start Dates:
Location: University of Toronto
Course Fee: $430 + HST (includes materials)
S. 1 Novmeber 2012
Days 1 and 2 – The Real Estate Math ToolBox
Sunday November 4 – 9:30 a.m. – 12:30 p.m.
Sunday November 11 – 9:30 a.m. – 12:30 p.m.
Days 3 and 4 – Real Estate Math Problem Solving Questions – The ToolBox Applied
Sunday November 18 – 9:30 a.m. – 12:30 p.m.
Sunday November 25 – 9:30 a.m. – 12:30 p.m.
Telephone – (416) 410 -7737 – VISA or Mastercard required