BA 4364 Section 001

Course
Real Estate Finance
Professor George DeCourcy
Term Spring 2011
Meetings M/W 11:30am - 12:45pm SOM 2.904

Professor’s Contact Information

Office Phone 972-883-5810
Office Location SOM 2.410
Email Address george@utdallas.edu
Office Hours By appointment
Other Please email me at UTD email address – not via eLearning

General Course Information

Pre-requisites BA3341 or permission of instructor; Excel spreadsheet capabilities
This course is a finance course with special focus on the real estate
Course industry. It prepares students to understand the risks and rewards
Description associated with investing and owning real estate with an emphasis
on income producing properties.
At the end of the course, students will be able to:
Identify the risks associated with financing real estate
Understand various loan structures
Calculate mortgage payments
Learning
Develop basic cash flow models to evaluate property
Outcomes
Use advanced modeling tools for property analysis
Understand development financing options and risk
Understand financing sources and capital market influences on
the real estate marketplace
Real Estate Finance and Investments, 14th Edition,
© 2011, by William Brueggeman and Jeffrey Fisher. Hardcover.
Required Text
McGraw Hill. ISBN-13 9780073377339. Earlier editions
acceptable but not recommended.
Text Resources http://highered.mcgraw-hill.com/sites/0073377333/student_view0/
Calculators Recommended: TI BA II Plus or HP 12C
Laptops with Excel (MS 2007or above) are REQUIRED for this
course and will be used extensively in class. We will also be using a
program called ARGUS which only runs on MS Windows
Laptops/Software machines (not Mac). Instructor will provide details for obtaining a
license to use this program. Students without Windows based
laptops will have access to computer labs for these programs – but
this will require additional time on their part.
This is a new course. Though the class dates are set, the material
Class Schedule / covered in each session remains fluid and will be updated
Academic throughout the semester. Students should continually check
Calendar eLearning for updates to the Schedule shown below. The instructor
will provide version numbers to assist in this process.
 SCHEDULE OF CLASSES

Version 1.0 (subject to change – please check back for updates)

Reading Comment
Date Topic Assignment
1 1/10 Basic Concepts Chapter 1 Introduction
2 1/12 Real Estate Financing Chapter 2
1/17 No class Martin Luther King Day
3 1/19 Mortgage Loan Foundations Chapter 3
4 1/24 Income Producing Property Chapter 9
Concepts
5 1/26 Income Producing Property Chapter 9
Continued
6 1/31 Income Producing Property Chapter 9
Continued
7 2/2 Exam 1
8 2/7 Income Properties - Valuation Chapter 10 Income approach
9 2/9 Income Property Valuation Chapter 10 Excel and Argus

10 2/14 Income Properties Applications Chapter 10 Oakwood Apartments

case
11 2/16 Analysis and Taxation Chapter 11
12 2/21 Analysis and Taxation – Chapter 11 Excel Monument case
continued
13 2/23 Analysis and Taxation Apps Chapter 11 Argus
14 2/28 Exam 2
15 3/2 Leverage and Financing Chapter 12
16 3/7 Leverage & Financing - con’t Chapter 12 Monument case
17 3/9 Leverage & Financing - con’t Chapter 12
- SPRING BREAK
18 3/21 Risk Analysis Chapter 13 Westgate case
19 3/23 Risk Analysis Chapter 13 Worthington case
20 3/28 Risk Analysis Chapter 13
21 3/30 Financing Development Chapter 16
22 4/3 Financing Land Development Chapter 17
23 4/6 Organizational Forms Chapter 18
24 4/11 Organizational Forms Chapter 18
25 4/13 Secondary Mtge. Market Chapter 19
26 4/18 Secondary Mtge. Market Chapter 19
27 4/20 CMOs & Derivatives Chapter 20
28 4/25 REITs Chapter 21
29 4/27 REITs Chapter 21
30 5/2 Exam 3
Course Policies
The course will be graded as follows:

Exams 1,2, and 3* 75%

Course Grade Homework Assignments: 20%
Participation/attendance: 5%

* lowest of three exam grades will carry ½ weighting (thus 30/30/15)

A+: 97%+ C+: 77-79%
A: 93-96% C: 73-76%
A-: 90-92% C-: 70-72%
Undergraduate B+: 87-89% D+: 67-69%
Grading B : 83-86% D: 63-66%
B-: 80-82% D-: 60-62%

F: Below 60%
Class Students should read assigned chapter material prior to the class session and
Procedure are expected to participate in class.
Homework requirements will be posted on eLearning. Students should check
Homework at least weekly for this information.
No make-ups allowed unless pre-arranged with Instructor.
EXAMS Laptops are NOT allowed during exams.

UTD Policies

Policies and Procedures for Students

The University of Texas at Dallas provides a number of policies and procedures designed to provide
students with a safe and supportive learning environment. Brief summaries of the policies and procedures
are provided for you at http://provost.utdallas.edu/home/syllabus-policies
and include information about technical support, field trip policies, off-campus activities, student conduct
and discipline, academic integrity, copyright infringement, email use, withdrawal from class, student
grievance procedures, incomplete grades, access to Disability Services, and religious holy days. You may
also seek further information at these websites:
http://www.utdallas.edu/BusinessAffairs/Travel_Risk_Activities.htm
http://www.utdallas.edu/judicialaffairs/UTDJudicialAffairs-HOPV.html
http://www.utsystem.edu/ogc/intellectualproperty/copypol2.htm
http://www.utdallas.edu/disability/documentation/index.html