Real Estate Consulting Basics

• Real Estate Consulting Fundamentals was prepared by Eden Dayrit, REB REA REL REC

Licensing Regulations

• Governed by RESA Law

Real Estate Consultant Defined (Art 1 Sec 3 G 1)

• A duly registered and licensed natural person.
• Offers professional advice and judgment for a fee, compensation, or other valuable consideration.
• Provides guidance on the acquisition, enhancement, preservation, utilization, or disposition of lands or improvements, and the conception, planning, management, and development of real estate projects.
• Refer to https://www.prc.gov.ph/uploaded/documents/RA%209646.RESA.pdf for more details.

Exam Schedule and Scope (Art III Sec 12 and 13a)

• Applicants, excluding real estate salespersons, must undergo an examination.
• The Board will give exams at least once a year in designated places and dates.
• An examination will be given to the licensure applicants for real estate brokers, real estate appraisers and real estate consultants.

RE Consultants Exam Schedule

• Program of the Real Estate Consultants Licensure Examination occurred December 2, 2018 (written) & January 8-11, 2019 (Revalida) in Manila.
• December 2 (Sunday) included General Instructions/Filling-out of Forms (7:00 a.m. - 7:45 a.m.), and Fundamentals of Real Estate Consulting (8:00 a.m. - 12:00 nn), Professional Consultancy Practice (1:00 p.m. – 5:00 p.m.).
• January 8-11 (Tuesday - Friday) included Project Feasibility Study (PFS) or Thesis, and Revalida/Oral Examination.
• The Project Feasibility Study was 5 hardbound copies in standard A4 size bond paper.
• It also used Arial font size 12, with line spacing of 1.5 lines, and the following margins: Left-1.5 inches, Top, Bottom and Right -1 inch, and saved in (3) USB flash drives.

RE Consultants Exam Scope

• Fundamentals of Real Estate Consulting: fundamentals of consulting, standards and ethics and, Uniform Standard of Professional Realty Consultant Practice, national code of ethics and responsibilities.
• Also includes: real estate finance and economics, land management system, real property laws, Family Code, Civil Code, Commercial Laws, National Internal Revenue Code, RESA 9646/IRR.
• Includes: Condominium Law, Real Estate Investment Trust, Time Sharing, & Cooperatives
• Professional Consultancy Practice entails: consulting tools and techniques, project feasibility study and investment measurement tools and, real estate consulting and investment analysis
• Also includes: consulting for residential, commercial, industrial, recreation and resort and hotel properties, & for government and corporate and financial institutions, consulting for distressed properties, leasing and buying analysis of properties
• Includes business communication/technical writing, environmental Impact Assessment (EIA) Study, current events, and cases studies.

Consulting Principles

• Main output, stakeholders, potential collaborators, and related disciplines.

Consulting Skills

• Analyzing property values, facilitating transactions, evaluating management performance, conducting research, forecasting investment outcomes.
• Identifying threats/opportunities, investigating markets, planning developments, modeling investment scenarios, negotiating/arbitrating between parties and providing expert teestimony.
• Includes: Training others in real estate services, and simplifying complex situation

Consulting Services

• Feasibility studies, development planning, disposition/acquisition planning, evaluation of proposed transactions, cost-benefit studies and, investment analysis.
• Also includes risk analysis, impact analysis, portfolio design, technical analysis, highest and best use studies and location/zoning analysis.
• Includes: market analysis, neighborhood analysis, marketing assistance, property management review, opinion testimony and conflict management.
• Concludes with financial planning

Client Engagement: Consultant Responsibilities Before Engagement

• Understand the client's business, identify the problem, define consultation scope, suggest alternatives, agree on expected output, and discuss the data collection process.
• Seeking permission to conduct interviews/audits, discuss collaboration with specialists, agree on a fee structure and payment schedule, scheduling site inspections, and submitting a formal proposal.
• Includes signing a consulting engagement contract.

Client Engagement: Consultant Responsibilities During & After Engagement

• Implement engagement abiding by consulting standards/ethics, within contractual agreements.
• Includes: Maintaining confidentiality in the process of conducting the feasibility study, performing periodic progress updates and assisting the client in implementing agreed decisions/actions

Professional Fee: Fee Structure

• Straight or Fixed Fee entails a lump-sum payment based on quantifiable factors like data availability, expertise needed, and the time to complete engagement.
• Modified Fixed Fee constitutes a lump-sum payment with provision for variable income factoring in time, expenses, & retainer arrangements.
• Performance Fee is incentive-based, not commission-based, usually upfront minimum fixed fee + performance.

Professional Fee: Fee Considerations

• Intricacy of the problem, urgency of the engagement, required professional skills, incurred savings, time/personnel expended and results obtained.

Explore the fundamentals of real estate consulting, including consultant definition, responsibilities, and fee structures. Understand RESA Law implications and engagement processes. Learn about the ethical obligations of consultants.