FNAN 451: Real Estate Finance Master Syllabus
Course Instructor:
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Course Website: Canvas
Text
Brueggeman W. B and Fisher, J. D. Real Estate Finance and Investment 2011 (14th ed. edition), McGraw- Hill (required) Financial calculator, excel and proficiency in using both.
Course Objectives
This course provides an in-depth examination of real estate investing and financing decisions. It will build on concepts, models, and analytical approaches developed in the prerequisite courses. While the focus is on decisions, the course will also cover institutional material that is important for understanding real estate assets and markets. The course will emphasize income-producing real estate, but some attention will be devoted to issues involving owner-occupied housing.
At the end of the course, students should be able to:
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develop and analyze information for projecting the performance and risks of real estate assets;
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use appropriate techniques for analyzing decisions about the acquisition and disposition of real estate assets;
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analyze the effects of alternative approaches for financing specific investments in real estate;
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understand the advantages of alternative structures for organizing the ownership of real estate;
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examine the suitability of real estate investments from the perspective of specific investors.
Outside Readings
- Wall Street Journal, Investor’s Business Daily
- Web App boxes in some chapters of the text book provide exercise that requires finding relevant information on the internet. The resources obtained from internet provide readers with opportunity to remain current on many real estate topics.
Examination Policies
Grading standards
| In-Class Tests | (20% each for a total of 40%) |
| Final exam | 45% |
| Problem sets | 15% |
| Total | 100% |
Use of (+, -) grades and Types of exams: short essay on fundamental concepts and problem-solving questions.
Course Outline and Schedule (Sample)
| Week | Topics [Chapters (Brueggeman and Fisher 2011)] |
| 1 | Real Estate Investment: Basic legal Concepts(Chapter1); Real Estate Financing: Notes and Mortgages (Chapter2); Mortgage Loan Foundations: The Time Value of Money (Chapter 3) |
| 2 | Fixed Interest Rate Mortgages Loans ( Chapter 4) and Adjustable and Floating Rate Mortgage Loans (Chapter 5) |
| 3 | Adjustable and Floating Rate Mortgage Loans (Chapter 5) and Mortgages: Additional concepts, Analysis and Applications(Chapter 6) |
| 4 | Mortgages: Additional Concepts, Analysis and Applications( Chapter 6) |
| 5 | Single Family Housing : Pricing , Investment and Tax consideration (Chapter 7) |
| 6 | First in-house examination (one hour and twenty Minutes) and Underwriting and Financing Residential Properties (Chapter 8) |
| 7 | Underwriting and Financing Residential Properties (Chapter 8) Income- Producing Properties: Leases, Rents and the Market for Space (Chapter 9) |
| 8 | Spring Recess |
| 9 | Income- Producing Properties: Leases, Rents and the Market for Space (Chapter 9) and Valuation of Income properties: Appraisal and Market for Capital (Chapter 10) |
| 10 | Valuation of Income properties: Appraisal and Market for Capital (Chapter 10) and Investment Analysis and Taxation of Income Properties (Chapter 11) |
| 11 | Investment Analysis and Taxation of Income Properties (Chapter 11) and Financial Leverage and Financing Alternatives (Chapter 12) |
| 12 | Financial Leverage and Financing Alternatives (Chapter 12) and Risk Analysis (Chapter 13), Second in-house examination(one hour and twenty minutes) |
| 13 | The Secondary Mortgage Market: Pass –Through Securities( Chapter 19) and Secondary Mortgage: CMOs and Derivative Security (Chapter 20) |
| 14 | Secondary Mortgage: CMOs and Derivative Security (Chapter 20) and Real Estate Investment Trusts(REITS) (Chapter21) |
| 15 | Real Estate Investment Trusts(REITS) (Chapter21) and Review for Final examination.. |
| 16 | Final Examination |
| Note: Last day to drop | TBD |
Honor Code
Students are expected to observe the George Mason University Honor Code.
Attendance
Students are strongly encouraged to attend every class meeting. Anyone who thinks that he/she has a chance of missing more than four classes should definitely take a different course.
Etiquette in the Class Room
Students must turn off all phones, beepers, etc. when attending class. No one has permission to tape record any part of any lecture or discussion in any session. PRIVATE CONVERSATIONS BETWEEN STUDENTS WHILE CLASS IS IN SESSION ARE IMPOLITE, UNPROFESSIONAL, AND UNWELCOMED.
Exams
Students who want to take an exam at other than at the scheduled time must get prior permission from the instructor who is unlikely to give it unless the student has a serious medical problem (documented by a doctor in writing) or faces a severe conflict in schedule because of a work-related matter (documented in writing by a supervisor).
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