Иностранный язык (английский) в профессиональной деятельности. Учебное пособие

Parties in a real estate development process

facet — аспект, грань, сторона litigation — тяжба, судебный процесс

eviction — возвращение имущества по суду

public nuisance — нарушение общественного порядка

Assignment 1

Read and translate the text.

Assignment 2

Answer the following questions:

1.What does property management involve?

2.What is real development management?

3.What are the primary tasks of the real estate management?

4.Why is it necessary for the manager to act in accordance with the law?

Parties in a real estate development process

Investors, who usually provide financing of a project — banks, non-gov- ernmental invest funds, insurance and pension funds.

Construction organizations.

Professional consultants and advisors. The main tasks of a financial advisor in the sphere of the real estate development are: valuation and analyzing of development projects; drafting and conclusion of contracts, etc.

Real estate agents. Real estate estimators.

State bodies regulating real estate development. Owners, including adjoining proprietors. Proponents of protection monuments. Consumers.

The Developer's Customers

Like any other business, the real estate development business is driven by the needs, attitudes, likes, and dislikes of its customers. No matter how beautiful or creative a particular real estate project may be, it will not work unless a customer decides to pay his money for the right to use or own that project.

The developer's customers can be broken down into two big categories.

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Иностранный язык (английский) в профессиональной деятельности

•Tenants — These are the people, who are willing to pay rent to USE for a specified period of time all or a portion of a project created by the developer. Banks, law firms, technology companies, and other private sector tenants are the lifeblood of office buildings, warehouses, shopping centres, and other commercial real estate projects.

•Buyers — These are the people who want to OWN the developer's project because they believe that owning real estate is a good investment. These buyers (commonly referred to as «institutional investors») generally come from the ranks of life insurance companies, pension plans, equity funds, sovereign wealth funds, and other financial institutions, both domestic and foreign, that have huge sums of money to invest in real estate each year. The success of a real estate development project is predicated upon the developer's ability to create a product that simultaneously satisfies the needs of both (1) tenants from the private sector, and (2) buyers from the ranks of the institutional investor community.

Sam Walton, the founder of the worldwide famous company Walmart, once said, «There is only one boss — the customer. And he can fire everybody in the company from the chairman on down, simply by spending his money somewhere else.» The real estate developer needs to accept and embrace the fact that there are two customers that can fire the developer — both the developer's tenants and its institutional investors.

Competitors.

Neighbours.

Key words

consultant — советник, консультант valuation — оценка, определение стоимости proponent — защитник

consumer — потребитель predicate — утверждать, заявлять

embrace — включать, заключать в себе, содержать, охватывать

Assignment 1

Read and translate the text.

Assignment 2

Answer the following questions:

1.What are the main tasks of a financial adviser in the sphere of the real estate development?

2.What categories of the development customers do you know?

3.Who are the institutional investors?

4.What founders of worldwide famous companies do you know?

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Real estate managers

Real estate managers

The primary role of the real estate managers, commonly referred to as property managers, is to oversee the daily operations of a real estate property, such as a commercial building or apartment complex. They manage facilities maintenance, collect rent, find renters when properties are vacant, and handle evictions. Real estate managers handle complaints, violations and other issues from residents and renters. They also manage property expenses and perform bookkeeping duties as needed.

Real estate managers can work for property management firms, property owners or be self-employed.

Real estate managers must perform several tasks in order to complete their job duties. Their main tasks are the following:

• Maintain properties

It falls to real estate managers to ensure that all commercial and other properties under their care are maintained. This includes overseeing minor repairs, painting, landscaping and other activities that upkeep the value of a property.

• Negotiate contracts

Real estate managers are typically involved in creating and negotiating the terms of a commercial or residential lease. This can include new leases, renewals or property purchases.

• Show properties

In some cases, real estate managers are responsible for showing potential renters or owners properties that are available for sale or lease. This involves escorting parties on property grounds, highlighting features and discussing any concerns about property repairs or cosmetic changes.

• Interact with tenants

From collecting rents to preparing eviction notices, real estate managers are involved in communicating with commercial or residential property renters. They will handle requests and complaints and implement conflict management skills when needed.

• Manage property expenses

Real estate managers also develop, oversee and make changes to property expense budgets as needed. They maintain expense records, set budget limits, develop cost-saving strategies and prepare financial statements.

Key words

complaint — жалоба violation — нарушение

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Иностранный язык (английский) в профессиональной деятельности

expenses — расходы bookkeeping — бухгалтерия

maintain — поддерживать, сохранять в надлежащем состоянии negotiate — вести переговоры, договариваться

lease — аренда, сдача внаём

financial statement — финансовый отчет Assignment 1

Read and translate the text.

Assignment 2

Answer the following questions:

1.What is the primary role of the real estate managers?

2.Should real estate managers negotiate rental terms?

3.How do real estate managers work with property expenses?

Necessary conditions to become a successful real estate specialist

A good customer service, analytical and critical thinking skills top the list of the abilities that real estate managers should possess. Successful real estate managers should be able to communicate both verbally and in writing and be detail-oriented and deadline-driven. Knowledge of bookkeeping, good project management skills, team-building and scheduling are very important for this occupation. The ability to work both independently and in teams is imperative.

It is useful for the future specialists in the field of the real estate management and development to study the requirements of the largest American corporation GEDCO. Among other things, the corporation considers the following skills to be necessary the for real estate managers.

The company states that candidate must have at least 2 years of relevant real estate development and/or project management experience. Candidate must also have a working knowledge of affordable housing assets, including multifamily property financial operations. Experience with affordable housing underwriting, construction management, and asset management is a plus.

A candidate must also be open to learning and not afraid to ask questions.

•Review of civil engineering and architectural plans, working with staff, consultants, and elected bodies to manage and complete the design and city approval process.

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Necessary conditions to become a successful real estate specialist

•Communication with and coordination of the consultant team, including land planners, engineers, architects, utility companies and other third party consultants, as well as the construction team.

•Drives the development process by updating schedules, budgets, timelines, financial information, projections and closings as necessary.

•Ensures the completion of tasks within acceptable time frames through the preparation, review and management of schedules by coordinating and managing participants.

•Prepares for and present organizational objectives and projects at community meetings.

•Assists with the preparation of RFPs, consultant bids, reviews and manages consultant and building construction contracts/contractors.

•Monitors construction progress through periodic on site observations.

•Keeps abreast of regulatory changes affecting development and platting requirements in order to take advantage of or compensate for the changes.

•Works with third-party management companies to oversee the management and financial statements.

•Monitors a portfolio of assets financed with housing agency debts, conventional loans, HUD financing and subsidies, and low-income housing tax credits.

•Researches new cost effective approaches to reduce property operating expenses.

•Coordinates all tax/accounting year-end reporting with owner, auditor, HUD and third-party management agents.

•Oversees Property financial statement preparation and assists with financial statements as needed to prepare for year-end audits.

•Staffs and facilitates monthly Real Estate Development Committee meetings with board and volunteers.

•Performs other tasks as required by Other Relevant Experience and Skills.

•Must be able to work well under pressure and meet deadlines.

•Strong written and verbal communication, negotiation and presentation skills.

•Ability to develop and manage budgets and understand job cost management.

•Understanding of real estate principles.

•Ability to recognize and assess risks through the due diligence process.

•Ability to identify and resolve problems and develop alternative solutions in a timely manner.

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Иностранный язык (английский) в профессиональной деятельности

•Detail oriented and organized work habits.

•Ability to act and operate independently with minimal daily direction.

•Candidates should have excellent time management and organizational skills.

•Ensure confidentiality of all privileged and proprietary GEDCO information.

Education — Higher degree in finance, engineering, project management, real estate development, urban planning, or business related. Construction/Land Development/Real Estate programme preferred. Strong computer skills, including Microsoft Office (Excel, Word, and Project) and Google applications, preferred. Supervisory responsibility: None. Physical demands: This job requires the employee to stand, stoop, bend, climb stairs, and lift up to 20 lbs. The position requires fine motor skill of typing, writing, filing and visual acuity. This position requires the ability to speak clearly and understandably. Work environment: working conditions consist of a regular office environment for all functions of the job. Twenty per cent of time may be allocated for local travel to/from development projects, job meetings, and GEDCO properties as part of this position.

Assignment 1

Write out and translate the keywords.

Assignment 2

Read and translate the text in writing.

Assignment 3

Make a summary of the information contained in the text.

Seven stages of a real estate development

Real estate development process considers the overall life-cycle of a real estate project. In each stage, the developer achieves certain tasks by spending money, using unique talents and skills, and in the process taking risks to increase the value of the property. In each stage, the developer buys one thing and sells another. In each stage, the developer must answer the following questions:

•Can I do what»s got to be done?

•Do I have the necessary skills, resources, time, and team support?

•Can I take the risk of failure?

•Can I create real value?

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Seven stages of a real estate development

A brief description of the seven sequential stages A. Stage 1: Land Banking Stage

The «Land Banker» acquires or holds undeveloped or «raw» that he believes will become attractive for future development through general and broad market trends. Land bankers can be active in the pursuit of the opportunistic «land buys». Although many land bankers can be advertent land owners such as estates or government agencies or public utilities. This is a relatively passive investment position. Good examples of «land bankers» are public utilities, universities, and inheritors of the «family farm». When the market conditions are right, the land banker then sells the land to a «land packager». The land banking stage and the redevelopment stage are really the same except that the land banker usually has «green fields» and the redeveloper has «brown fields».

B. Stage 2: Land Packaging Stage

The «Land Packager» buys the raw land from the passive land banker and then improves the value of the land through conceptual land planning, zoning changes, financing schemes, or other «paper enhancements» like title insurance, accurate surveys, or environmental studies. Examples of land packagers are land planning firms, politically skilled lawyers, and governmental agencies who attempt to obtain government approvals of land they own. This «packaged land» is then sold to the «land developer».

C. Stage 3: Land Development Stage

The «Land Developer» buys the land with the paper enhancements from the land packager and then improves the land so it can be sold as finished building pads to a building developer. This usually involves the construction of a horizontal infrastructure such as roads and utilities as well as common improvements such as water dentition and recreational facilities. A good example of the land developers are master-planned community developers who construct the roads, utilities, and recreational amenities and then sell building lots to home builders.

D. Stage 4: Building Development Stage

The «Building Developer» buys the finished pad from the land developer and then does the vertical development by constructing the building improvements. During construction, the building developer may also attempt to lease the building so the finished building can be sold to the building operator. Home builders are a good example of building developers. On the commercial side, building developers are often called «merchant builders».

E. Stage 5: Operating Stage

The «Building Operator» leases up the property, manages the property, and develops a building operating history so it can be sold to other building

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Иностранный язык (английский) в профессиональной деятельности

operators during its economic life or sold to a building renovator at the end of its economic life. The biggest building operators are usually referred to as institutional investors, which may include pension funds, insurance companies, or public real estate investment trusts.

F. Stage 6: Renovation Stage

The «Property Renovator» buys the property with substantial economic and/or physical depreciation and creates value by curing these deficiencies, then re-positioning and operating the building until the property is ready for redevelopment. The unique skills and risks for building renovators are usually found in companies that specialize in «historic renovation». Currently, many shopping centre developers are looking for old centres that need to be fixedup and re-marketed to different retail tenants.

G. Stage 7: Redevelopment Stage

The «Property Re-developer» buys the property with such serious physical or functional deficiencies that the improvements must be torn down and/or redeveloped for another use. This essentially begins the real estate development process all over again. In every major city, govern- ment-sponsored redevelopment agencies are probably the largest players in the stage even though they didn»t exactly «buy» their holdings from building renovators. Usually the municipalities acquire the properties through tax foreclosures and assign these properties to the agencies to be sold.

The real estate development process involves three major groups — a consumer group, a production group, and a public infrastructure group. Each group benefits from cooperation and a full understanding of the values, shortand long-term objectives, and major limitations controlling the other two groups.

Key words

raw — необработанный, сырой

utilities — коммунальные сооружения (предприятия)

redevelopment — изменение, перестройка, преобразование, реконструкция enhancement — увеличение, прирост, расширение

trust — трест

renovation — восстановление; реконструкция merchant builder — коммерческий строитель re-market — перепродать

municipality — город, имеющий самоуправление depreciation — снижение стоимости, обесценивание foreclosure — лишение права выкупа закладной

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A real estate contract

Assignment 1

Read and translate the text.

Assignment 2

Answer the following questions:

1.What do merchant builders usually do?

2.Who are institutional investors?

3.Why do the companies that specialize in historic renovation need special and unique skills?

A real estate contract

A real estate contract is a legally binding agreement between a buyer and seller concerning title to property. Since contracts play such an important role in the real estate marketplace, real estate managers and developers must have a thorough understanding of the fundamentals of contract law.

So any real estate purchase contract is a purchase agreement, a legally binding written offer to purchase that the seller accepts with a promise to convey real property for a monetary value. A binding contract is formed when an offer is made and accepted between capable parties, the contract is for a consideration of legal purpose, and there is mutual agreement. A contract is performed when the terms and contingencies of the contract are completed by the parties as mutually agreed. In other words, each party does what is expected according to the terms of the purchase agreement. The rights and obligations of the parties under contract may be enforced by the courts.

Types of contracts

Unilateral contract — a contract in which only one party makes an express promise, or undertakes a performance without first securing a reciprocal agreement from the other party.

In a unilateral, or one-sided, contract, one party, known as the offeror, makes a promise in exchange for an act (or abstention from acting) by another party, known as the offeree. If the offeree acts on the offeror's promise, the offeror is legally obligated to fulfil the contract, but an offeree cannot be forced to act (or not act), because no return promise has been made to the

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Иностранный язык (английский) в профессиональной деятельности

offeror. After an offeree has performed, only one enforceable promise exists, that of the offeror.

Bilateral contract — a contract in which two (or more) parties are involved and each makes promises to the other party.

The most commonly used type of a contract. The usual real estate sales contract is an example of a bilateral contract in which the buyer and the seller exchange reciprocal promises respectively to buy and sell the property. If one party refuses to honour his or her promise and the other party is ready to perform, the nonperforming party is said to be in default. Neither party is liable to the other until there is first a performance, or tender of performance, by the no defaulting party. Thus, when the buyer refuses to pay the purchase price, the seller usually must tender the deed into escrow to show that he or she is ready to perform. In some cases, however, tender is not necessary.

The parties state the terms of their contract verbally or in writing. With the exception of short-term leases, real estate contracts are required to be in writing.

Both unilateral and bilateral contracts can be breached. Consider the term «breach» synonymous with «break». This means breach of contract can be defined as a broken contract, stemming from failure to fulfil any term of a contract without a justifiable, lawful excuse.

At first glance, the most obvious difference between bilateral and unilateral contracts is the number of people or parties promising an action. Bilateral contracts need at least two, while unilateral contracts only obligate action on one part.

The other differences might be a bit more subtle. Look at what's being offered. In unilateral contracts, one offering the deal promises to pay when a certain act or task is complete, but bilateral contracts allow for an upfront exchange.

Both unilateral and bilateral contracts are enforceable in court. For example, a unilateral contract is enforceable when someone chooses to begin fulfilling the act demanded by the promisor. A bilateral contract is enforceable from the get-go; both parties are bound the promise.

Status of contracts

An executory contract is when one or both parties have obligations still to be performed. There are still obligations that must be fulfilled. For example, a sales contract is an executory contract until the buyer has obtained

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