Class Packets

• Real Estate Finance Lecture Notes 2003: Professor Crocker H. Liu
• How to Use Excel for Financial Modeling Packet, 1999, Professor Crocker H. Liu

Grade Distribution: Grading is based on the class curve rather than the total number of points and adheres to the grading curve set by the Finance department. The professor has no control over this curve. This grade distribution is only an approximation

A (A, A-)	25%
B (B+, B, B-)	45%
C (C+, C, C-)	25%
D and F	5% (Given only if students haven't turned in assignments nor taken exams)

Grading Policy:

Case 1: Location Analysis	12%
Case 2: Market Analysis	12%
Case 3: Housing Affordability	12%
Case 4: Backdoor-Frontdoor	12%
Case 5: Angus Cartwright	12%
Homework: Due at the beginning of class (1 problem set)	5%
Midterm Exam: November 11, 2003	15%
Final Exam:	20%

Each of the mini-cases is an INDIVIDUAL case study.  Students must turn in assignments on date due by the beginning of class. No late submissions are allowed. Grading is based on the class curve. This means that if you score 60 out of a 100 points and yours is the top grade in the class, you receive an A.

Course Objective:This course is not designed to provide an overview of general real estate finance principles and practices. Rather, this course is tailored for the serious student who wants an in depth perspective of the theory and applications of financing and investing in real estate with an emphasis on commercial real estate. However, residential real estate will also be covered. This course is not a how to get rich quick in real estate with no money down.

Week	Date	Topic	Assigned Readings/Assignment
1	9/02-9/04	R.E. Finance Process	BF Chapter 1 - Overview of Real Estate Finance PC Chapter 1 - The Game
2	9/09-9/11	Location Analysis	Case 5: Location Analysis (I will let you know when to start this case and when it will be due) Thrall, et al. , Applying the 7 Step Site Selection Methodology to Red Lobster: Steps 1 and 2, February 1998, Geospatial Solutions, pp. 40-43   ___, Step 3: Assessing Relative Performance, April 1998, Geospatial Solutions, pp. 38-44  ___, Step 4: Identify Situation Targets, June 1998, Geospatial Solutions, pp. 38-43  ___, Step 5: Assess Market Penetration, September 1998, Geospatial Solutions, pp. 46-50  ___, Step 6: Identify Markets for Expansion, Nov 1998, Geospatial Solutions, pp. 42-45  ___, Step 7: Judgement, February 1999, Geospatial Solutions, pp. 36-37
3-4	9/16-9/25	Real Estate Cycles	D. Guilkey, 1999, How Good Are MSA Forecasts M. Miles, 1997, A Foundation for Strategic R.E. Allocation M. Miles & D. Guilkey, 1998, A Tactical Look at the Space Mkt Index Torto Wheaton and GMAC, Real Estate Cycles and Outlook 2001 Case 2: Market Analysis
5	9/30 - 10/02	Mortgages	BF Chapter 2 - Legal Considerations in Real Estate Finance BF Chapter 3 - The Interest Factor in Financing (Review) BF Chapter 4 - Fixed Rate Mortgages Homework: Chapter 4 - #2, #7, #8, #13, #15, Chapter 5 - #1, #2
6	10/07 - 10/09	Mortgages (continued)	BF Chapter 5 - Adjustable Rate and Variable Payment Mortgages BF Chapter 6 - Underwriting & Financing Residential Properties BF Chapter 7 - Residential Financial Analysis Case 3: Housing Affordability
7	10/14	Building Envelope
7-8	10/16-10/23	Solvency	PC Chapter 2 - Using Numbers in Real Estate PC Chapter 3 - From Concept to Commitment PC Chapter 4 - From Commitment to Closing BF Chapter 11 - Financial Leverage & Debt Structure (up to p. 345) How to Use Excel for Financial Modeling Packet Case 4: Backdoor-Frontdoor
9	10/28	Midterm Exam	Students are allowed to bring in 2 pages of formulas (single-sided)
9-11	10/30-11/06	Cash Flow Analysis	PC Chapter 7 - Operations BF Chapter 9 - Introduction to Leases, Projecting Cash Flows BF Chapter 10 - Investment and Risk Analysis Case 5: Angus Cartwright Case
12	11/11 - 11/13	Valuation of Real Estate	BF Chapter 8 - Introduction to Income Producing Properties and Valuation Fundamentals
13	11/18 - 11/20	Financing Alternatives	BF Chapter 11 - Financial Leverage & Debt Structure (from p. 346 - 366)
14	11/25	Real Estate Development	BF Chapter 15 - Financing Construction Projects BF Chapter 18 - Financing Land Development Projects BF Chapter 12 - Partnerships, Joint Ventures, and Syndications
14	11/27	Thanksgiving	Holiday Break
15-16	12/02 - 12/09	Real Estate Development	PC Chapter 5 - Syndications and REITs PC Chapter 6 - Development PC Chapter 8 - The Harvest PC Chapter 9 - Back to the Game BF Chapter 15 - Financing Construction Projects BF Chapter 18 - Financing Land Development Projects BF Chapter 12 - Partnerships, Joint Ventures, and Syndications