| COURSE DESCRIPTION | ||||
| College | College of Administrative & Financial Sciences | Department | Finance | |
| Course Name | Real Estate Finance | Course Code: | FIN414 | |
| Credit Hours | 3 | Contact Hours | 3 | |
| Language | Arabic | English | ||
| Track | College Req. | Dep. Req. | § Concentration | |
| Level | Level 6, 7, 8 | Prerequisite | FIN201 | |
| Course Description: This course provides an overview of real estate markets and the analysis used to support financial decision-making. The initial portion of the course will cover basics of real estate and mortgage products, including securitized residential debt. The course will expose students to current “real world” real estate finance and investment situations and people who shape them. | ||||
| Course learning outcomes: Upon completion of this course, the student will be able to: 1. Define and apply the real estate finance terminology. 2. Identify and apply basic finance techniques for residential real estate. 3. Discuss specific real estate finance functions of loan organization, processing, underwriting, and delivery to secondary market. 4. List the types of investments (ownership, debt, and securities) | ||||
| 5. Distinguish between the features and benefits of each investment type 6. Discuss how the key characteristics of investments (safety, liquidity, and yield) interact to affect investment risk 7. Discuss the concept of diversification and how it affects risk 8. Describe the types of risks assumed by mortgage lenders, including risk of default, risk of loss, interest rate risk, and prepayment risk |
| Course Major Topics: 1. Real Estate Investment: Legal Concepts and Basic Real Estate Financing 2. Mortgage Law Foundation: The Time Value of Money 3. Fixed Rate Mortgage Loans, Adjustable and Floating Rate Mortgage Loans 4. Underwriting and Financing Residential Properties 5. Income-Producing Properties: Leases, Rents, and the Market for Space 6. Valuation of Income Properties: Appraisal and the Market for Capital 7. Investment Analysis and Taxation of Income Properties 8. Financial Leverage and Financing Alternatives 9. Risk Analysis 10. Disposition and Renovation of Income Properties 11. Financing Corporate Real Estate, Project Development 12. Structuring Real Estate Investments: Organizational Forms and Joint Ventures 13. Real Estate Investment Performance and Portfolio Considerations |
| Learning Resources Textbook William Brueggeman, Jeffrey Fisher: Real Estate Finance & Investments, McGraw-Hill/Irwin; 14 edition (February 12, 2010). ISBN-13: 978-0073377339 |
| Grading: Course works (assignments, quizzes, projects, case studies, board discussion): 25% Midterm exam 25% Final Exam 50% |