Finance 436

FINC 436: Real Estate Finance

Prerequisite: FINC 251 or FINC 331 and FINC 336

Credit hours (3)

This course provides a study of real estate finance and investment analysis.  Attention is given to real estate financing requirements for homeownership and for investment property, real estate tax considerations, cash flow analysis, property valuation, property management, operating a real estate brokerage and lease contract provisions.

Detailed Description of Course

    1) Leasing versus Home Ownership Advantages and Disadvantages
    2) Home Ownership Tax Considerations
    3) Tax Considerations in Real Estate Investment
    4) Home Mortgage Financing Considerations and Qualifying for Mortgage Financing
    5) Real Estate Investment Property Analysis and Financing Considerations
    6) Real Estate Brokerage and Operating a Real Estate Office
    7) Incremental Cost of Borrowing and Leverage Analysis
    8) Real Property Management and Lease Contract Provisions
    9) Title Closing
    10)Residential Property Appraising
    11)Investment Property Appraising
    12)Subdivisions, Developments, and Condominiums
    13)Economic Base Analysis

Detailed Description of Conduct of Course

Real Estate Finance consists of class lectures, class discussions of current real estate finance and investment topics, in-class projects, use of real estate related software, a research paper and the presentation of the results.

Goals and Objectives of the Course

Having successfully completed the course the student will be able to:
    1) Understand the basic premises used in real estate investment analysis;
    2) Understand the basic guidelines used to qualify for real estate financing;
    3) Understand the important tax considerations in homeowners and rea estate investment;
    4) Understand the basic functions performed by real estate professionals including real estate
       agents, brokers, appraisers, and property managers;
    5) Understand the basics of real estate closings and the Real Estate Settlement and Procedures
       Act and the role of governments in real estate activities.

Assessment Measures

Graded assignments may include in-class tests, examinations, assignments, real estate exercises, a research paper and the presentation of the results.

Other Course Information


Review and Approval

February 1, 2008
February 25, 2014
September 2, 2014
December 1, 2017