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
None
Review and Approval
February 1, 2008
February 25, 2014
September 2, 2014
December 1, 2017