Standard

Updated: 08/28/06

RState Standard

£Institutionally Developed

College:  n/a

BAF 205 - Real Estate Finance

Course Description

Emphasizes the relevance of land value, legal titles, legal descriptions, types of real estate finance, the leverage of real estate, the bank funding requirement, mortgage amortizations, financial theory, and real estate markets.

 

Competency Areas

Hours

History of Real Estate

Class

5

Real Estate Concept Development

D. Lab

0

Economic Growth

P. Lab/O.B.I.

0

Function of Real Estate Finance

Credit

5

Savings/Investment/Construction Functions

 

 

Real Estate Investment Instruments

 

 

Real Estate Brokerage

 

 

 

 

 

Prerequisite:

Program Admission

 

Course Guide

 

Competency

After completing this section, the student will:

Hours

Class

D.Lab

P.Lab/

O.B.I.

HISTORY OF REAL ESTATE

3

0

0

 

Understand the developmental history of real estate.

 

 

 

REAL ESTATE CONCEPT DEVELOPMENT

4

0

0

 

Understand the value of private property ownership and land value.

 

 

 

 

Describe the legal environment of real estate.

 

 

 

ECONOMIC GROWTH

5

0

0

 

Understand fixtures, easements, legal descriptions, deeds and conveyances, recording and constructive notice, contracts, and real estate closings.

 

 

 

FUNCTION OF REAL ESTATE FINANCE

10

0

0

 

Understand commercial bank function, investment companies, direct financing, and secondary mortgage markets.

 

 

 

 

Understand derivative securities, qualifying ratios, and settlement provisions evaluation.

 

 

 

SAVINGS/INVESTMENT/CONSTRUCTION FUNCTIONS

6

0

0

 

Understand financial theory, yield curves, asset valuation, fixed rate mortgages, prepayment penalties, and amortization concepts.

 

 

 

REAL ESTATE INVESTMENT INSTRUMENTS

10

0

0

 

Understand principal and interest, the effective cost of a mortgage, alternative mortgage products.

 

 

 

REAL ESTATE BROKERAGE

12

0

0

 

Understand owner seconds, mortgage bonds, housing acts, block grants, collateralized securities, Fannie Mae, Ginnie Mae, and Freddie Mac securities, and real estate markets.

 

 

 

 

Describe discounted cash flow, capital structure, acquisition and development of real estate, collateralized mortgage loans and securities, release provisions, financial leverage, Truth in Lending, and real estate sales.

 

 

 

 

Understand how technology is reshaping the real estate market and financial calculator applications/excel spreadsheets/web searches.

 

 

 

 

Suggested Resources

 

Claurtice and Sirmans. Real Estate Finance. 3rd Edition. Prentice Hall.

Werner and Kratovall. Real Estate Law. 10th Edition. Prentice Hall.