UAM-CUSE
College of University Studies in English (UAM-CUSE)
Real Estate
Spring 2016
Tuesday 6:10 pm - 7:40 pm, Room M - 202
Thursday 6:10 pm - 7:40 pm, Room M - 2021
Instructor:
Professor Chale Espinosa A
Cell: 8851-3355
e-mail: chale.espinosa@gmail.com
Tweeter: @chalespinosa
Office Hours: by appointment
Text:
W. B. Brueggeman & J. D. Fisher, Real Estate Finance and Investments (Chicago, IL: Irwin, 1997, 14th
edition)
Prerequisites:
Corporate Financial Management (Requirement)
Course Description:
BUS-0423: Real Estate
Total Hours: 48 Credits: 3
Students will develop the ability to analyze the methods of determining land use and city and urban
development. Students will understand the developer, valuation expert and realtor’s role in development and
finance of Real Estate. This theoretic practical class will compare and contrast the structure, regulation
growth, financing and future of the real estate industry in the US and Nicaragua. Real Estate is related to
financial investment classes. Heavy emphasis is placed in Corporate Finance and Financial Math.
Prerequisite: Principles of Finance and Corporate Financial Management (PV theory knowledge is a must)
Purpose:
The course is designed to provide students with insights into problems and practices in real estate and real
estate finance. The approach is managerial, rather than theoretical and requires financial math knowledge and
understanding. Class participation is expected of all students.
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We will have a 10:00 minute break at 8:00 pm
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UAM’s Transversal Competencies
Competencies
Competency
related to learning
Objectives
1.
Learning Outcomes
Use information and
communication
technology to
permanently learn,
abstract, analyze,
synthesize, identify,
propose research,
resolve problems, and
put knowledge into
practice.
1.1.
1.1.
1.2.
To use the print and
electronic media as well as
personal interaction in
autonomous learning,
communication, and
permanent up-dating in the
profession.
To identify, formulate, and
resolve real or simulated
problems by systematically
using established methods
that have technical validity.
Competency
related to
interpersonal
relations
2.
Using English,
motivate students to
work in teams,
establish common
goals, and develop
skills in international
context.
To optimize the use of
English.
2.2 Identify group objectives and orient
toward these.
2.3 Apply the best practices of the
profession according to the latest
techniques.
Competency
related to personal
autonomy and
development
3.
To commit to quality,
adaptation to new
situations and
decision-making as
well as innovation
and work leading to
personal autonomy.
3.1 To satisfactorily reach academic
standards and parameters that are
personal and professional.
3.2 To effectively adapt to new
situations and be able to propose
innovative solutions.
3.3 To plan execute, and evaluate
autonomous and formative tasks and
professional roles that encourage
autonomy.
Competency
related to using
values
4.
To foster
responsibility, ethical
values and
demonstrate social
responsibility and
citizenship.
4.1 To always perform with academic
integrity according to the highest
standards and democratic values.
4.2 Realize or participate in projects
based on principles of democracy,
inclusion, gender, human development,
citizenship, sustainable development,
transparency, and care of the
environment.
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UAM-CUSE Transversal Competencies
1.
2.
3.
4.
5.
Master the mind.
Master communication.
Master information & technology.
Master a holistic view of the world.
Be an ethical leader: create a legacy.
Grades:
1.
1st Exam:
20%
2.
2nd Exam:
20%
3.
3rd Exam:
20%
4.
4th Exam
20%
5.
Quizzes after each chapter
10%
6.
5th. Homework
10%
(must be complete, partial homework does not count. Homework will be reviewed in class)
TOTAL. . . . . . . . . . . . . . . . . . . . . . . . .
100%2
Real Estate Finance and Investment - Course Outline:
1)
Introduction:
a)
b)
c)
d)
2)
3)
Introduction to Real Estate Investment: Basic Legal Concepts, Ch. 1
Real Estate Financing: Notes and Mortgages, Ch. 2
Nicaragua Real Estate Legal framework and practices (guest speaker)
Mortgage Loan Foundations: The Time Value of Money, Ch. 3
i) Homework pag 75 & 76 #6,8,10,11,13,14,15,16,17
Exam # 1
Mortgage Loans
b) Fixed-Rate Mortgage Loans, Brueggeman & Fisher, Ch. 4
i) Homework pag 108,109 #2, 3, 4, 6, 9, 10, 14, 15 & 16.
c) ARMs & VRMs, Brueggeman & Fisher, Ch. 5
i) Homework pag 145 & 146 # 1, 2, 3, 4, 5 & 6
Exam # 2
2
We will drop the lowest test grade, and average the rest.
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4)
5)
Mortgages: Additional, Concepts, Analysis, and Applications, Brueggeman & Fisher,
Ch. 6 problems 1 through 7 inclusive on pages 177-177
Residential Housing
a) Single Family Housing: Pricing, Investment and Tax considerations. Ch. 7
Homework to be assigned.
b) Underwriting and Financing Residential Properties. Ch. 8
Homework to be assigned.
Exam # 3
7)
Income Producing Properties (Debt and Equity)
a) Income-Producing Properties: Leases, Rents and the Market for
space, Brueggeman & Fisher, Ch. 9
Homework to be assigned
b) Valuation of Income Properties: Appraisal and the Market for Capital, Brueggeman &
Fisher, Chapter. 10
Homework to be assigned
Exam # 4
8)
9)
Investment Analysis and Taxation of Income properties,
a) Brueggeman & Fisher, Chapter. 11
Homework to be assigned
b) Financial Leverage and Financing Alternatives. Brueggeman & Fisher, Ch. 12
Homework to be assigned
Exam #5
Exams will cover all material that is included in each chapter whether discussed or not in
each class session; the second and subsequent exams will cover material since the date of
the last exam. Scheduled dates for the exams will be set depending on how fast material is
covered in class and although tentative we have scheduled five exams; the number may be
less.
Homework problems will be assigned at the end of each chapter and will be discussed and
reviewed in class. All students when call will do assigned homework on the board.
Its recommended that students study, review and understand Key Concepts at end of each
chapter as they are key to answer True/False and Multiple Choice test questions in the quiz
and tests.
The final examination will not be comprehensive and will be given during the scheduled
period during Finals week.
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Final Exam is programmed to be held on in the last week of may and/or first week of June
2016.
CUSE policy will be applicable class attendance, cheating, plagiarism and all other issues
mentioned and described in UAM-CUSE academic catalog. Use of computers, tablets,
IPads and smart phones will be allowed during regular classes but NOT during exams,
they will have to be stored under the desk. Phones usage i.e.: talking, answering will NOT
be allowed only on emergency basis.
Tardiness will be within the allowed 10 minutes after class begins thereafter doors will be
locked its up to the instructor to determine whether to implement policy will depend on
student behavior. Students will be allowed to enter class at break time and there will be a
10-minute break after an hour of class.
Students will be held responsible for all the material included in textbook and everything
covered or assigned in class. In addition to reviewing the assigned material in the textbook
and any outside materials introduced during the course of the semester, class time will be
devoted to industry situations and conditions that will place the material in context and
enhance students’ understanding and appreciation of the material.
It is necessary that you own and know to use of a financial calculator. Many homework and
exam problems require complex arithmetic calculations, and a financial calculator solves
these problems more efficiently than a scientific calculator. The financial calculator should
do time value of money, net present value (NPV), and internal rate of return (IRR) I will be
using the HP- C22. During exams you will Not be able to use your computer or intelligent
phone, to do the mathematics. Its your responsibility to bring calculator to exam no
exemptions will be made. No computer or financial Apps will be allowed.
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