REAL ESTATE Case Study

FIN 351: Principles of Real Estate

Charles M. Hilterbrand, Jr., JD, DBA

Office: 242 Holman Hall

Office hours: By appointment

Zoom: By Appointment, PMI: 470 709 2972 or

https://olemiss.zoom.us/j/4707092972

Email: [email protected]

Required Textbook: Ling, David C., and Wayne R. Archer. Real Estate Principles: A Value Approach. Fifth Edition: NY: McGraw-Hill, 2017. ISBN 978-0-07-783636-8

Other required

materials: Financial Calculator with capabilities to calculate time-value-of-money (N, I, PV, PMT, FV, IRR, NPV). Texas Instrument and Hewlett-Packard have models with those functions. The preferred models are Texas Instrument BA II Plus or BAII Plus Professional

Recommended references (Not Required):

Real Estate Finance and Investments by William B. Brueggeman and Jeffery D. Fisher (14th or 15th Edition, McGraw-Hill/Irwin).

Commercial Real Estate: Analysis and Investments by Geltner, Miller, Clayton and Eichholtz. Third Edition, Oncourse Learning.

Course website: Blackboard

Course Description

This section of Finance 351 is an online course. You will experience the course as an online student, taking part in online discussions, readings, lectures, and exams. All exams will be on online, set on the Blackboard platform and proctored by Proctorio software. The purpose of this course is to survey principles of real estate and the central role value has on decision-making. The course broadly covers the nature of real estate, real estate economics, property rights, contracts, market valuation, financing of real estate and basic mathematics pertaining to the real estate industry. This course conveys broad knowledge of the real estate industry and the mechanics and applications of real estate valuation tools.

Learning Objectives

After taking this course, students are expected to be able to

1. Understand basic features of real estate markets

2. Value real estate using the sales comparison approach and the income approach

3. Conduct basic mortgage-related calculations and make mortgage-financing decisions

4. Calculate before and after-tax cash flows from income properties

5. Understand the differences among mortgage types

6. Understand the process of real estate development

Course Grading

The grade for the course will be determined as follows:

Exams (4) (18% each) 720 points

Case Study (1) (18%) 180 points

Posted Online Quizzes (12) (10% total) 100 points

Total 1000 points

I do not assign plus/minus grades. I use the following scale:

A 90-100 or 900 points to 1000 points

B 80-89.99 or 800 points to 899.99 points

C 70-79.99 or 700 points to 799.99 points

D 60-69.99 or 600 points to 699.99 points

F <60 or less than 600 points

1. 72% of the course grade is based on four (4) non-cumulative exams. These exams online, set on the Blackboard platform and proctored by Proctorio software.

2. 18% of the course grade is based on a case study. The case study is a fact-based scenario assignment that will require an analysis form the students. The case study and its instructions will be provided later in the semester. Students are encouraged, but not required to, form teams. The teams may consist of three students or fewer students. The case is a long assignment, so you should form your teams early and start working on it well in advance of the due dates. Students who do not submit the case report in time will receive no credit.

3. Posted online quizzes in Blackboard will be provided throughout the semester on a weekly basis. Weekly quizzes will be due on Sundays at 11:00 PM Central. This may be subject to change at the discretion of the instructor. The due dates will be provided within the assignment, so please note the due dates and submit the quizzes in a timely manner.

4. If a mistake is made in grading and the mistake is brought to the instructor’s attention, it will be corrected, provided that any such mistake be brought to the attention of the Instructor no less than one week following the release of the information to the student wherein the mistake is evident. After one week, no grades will be adjusted.

Exam Instructions

All exams are closed book. You are responsible for bringing your financial calculator and for understanding how to use the calculator (i.e. no manuals, booklets, pamphlets, etc., during a quiz). You may not use your calculator or any other devices to save and display formulas and words that are related to course materials. All paper used during the examination is to be handed to the proctor with identification of the student in the upper right-hand corner.

Exams may include any combination of multiple choice, short answer work out, and essay questions. Exam dates appear in the most recent syllabus posted to Blackboard and any changes to exam dates will also be announced in class. Material for the exams will come from the lectures, text, guest speakers, and any materials handed out in class or on the course web page.

All exams will be on online, asynchronous, and set on the Blackboard platform and proctored by Proctorio software. Each exam will have an assigned date, but a broad time-period for the student to take the exam. The exam period will be from 6:00am Central through 9:00pm Central on the assigned exam dates. There will be no makeup exams offered. Conflicts with the exam date must be brought to the professor’s attention on or before the test date. A student who knows in advance that he or she will be unable to take an exam must notify the instructor prior to the exam. Those who have a last minute-schedule disruption must notify the instructor immediately.

ATTENDANCE AND VERIFICATION

Posted Online Quizzes count for 10% of your course grade. At the conclusion of the video portion of each module, there will be a posted quiz. Each quiz has a corresponding due date. Due dates are posted in Blackboard within the module. Please make a note of the due dates . Since homework can be completed anywhere you have an internet connection, you are expected to complete your homework regardless of personal circumstances on the due date.

Quizzes are due on Sundays at 11:00 PM Central Time. The quizzes will be compiled, and the assignments will count towards 10% of the course grade. Please note that quizzes may be completed prior to the due date. In other words, you do not have to wait until the due dates to complete/submit your quizzes.

If you miss a due date, you can complete an assignment after the quiz due date. There may be a 20-percent penalty for late quizzes (maximum score 80%). NO QUIZZES WILL BE ACCEPTED AFTER SUNDAY, JUNE 27, 2021 at 11:00 PM Central.

COVID-19 ATTENDANCE POLICY

Students attending the virtual component of hybrid, remote, or online courses are subject to the same attendance policy and procedures as traditional students. However, participation is defined in a different manner. The University’s “Attendance Policy for Online Education” states: “Student attendance in online courses is defined as active participation in the course as described in the individual course syllabus.” If students fail to meet online attendance requirements as stated in the syllabus, they will be given an absence.

SCHOOL OF BUSINESS ADMINISTRATION – STATEMENT OF ACADEMIC INTEGRITY

The School of Business Administration upholds honor and academic integrity in all of its teaching, research, and service activities. All business faculty, staff, and students are charged with the responsibility to behave with personal and professional integrity and to refrain from dishonorable conduct. Any student caught cheating will be assigned an F in the course. In most cases a statement will also be made to that effect in the student’s record and an academic discipline case may be initiated. Cheating includes, but is not limited to, presenting someone else’s work as one’s own, using unauthorized material on an exam, and looking at or copying someone’s work during an exam.

Academic Conduct and discipline

Students are expected to adhere to the University of Mississippi Creed and the Standards of Honesty as described in Policy Code ACA.AR.600.001 and written in the M Book. If you violate the Standards of Honesty, you will be reported and subject to the appropriate sanction which may include expulsion from the University. More information at this link:

https://policies.olemiss.edu/ShowDetails.jsp?istatPara=1&policyObjidPara=10817696

Disability Access AND INCLUSION Statement

Disability Access and Inclusion: The University of Mississippi is committed to the creation of inclusive learning environments for all students. If there are aspects of the instruction or design of this course that result in barriers to your full inclusion and participation, or to accurate assessment of your achievement, please contact the course instructor as soon as possible. Barriers may include, but are not necessarily limited to, timed exams and in-class assignments, difficulty with the acquisition of lecture content, inaccessible web content, and the use of non-captioned or non-transcribed video and audio files. If you are registered with SDS, you must log in to your Rebel Access portal

at https://sds.olemiss.edu/rebel-access-portal to request approved accommodations. If you are NOT registered with SDS, you must complete the process to become registered. To begin that process, please visit our website

at https://sds.olemiss.edu/apply-for-services. SDS will:

1. Complete a comprehensive review to determine your eligibility for accommodations,

2. If approved, disseminate to your instructors a Faculty Notification Letter,

3. Facilitate the removal of barriers, and

4. Ensure you have equal access to the same opportunities for success that are available to all students.

If you have questions, contact SDS at 662-915-7128 or [email protected].

COPYRIGHT AND FAIR USE

1) Materials used in connection with this course may be subject to copyright protection under Title 17 of the United States Code. Under certain Fair Use circumstances specified by law, copies may be made for private study, scholarship, or research. Electronic copies should not be shared with unauthorized users. Violations of copyright laws could subject you to federal and state civil penalties and criminal liability as well as disciplinary action under University policies.

2) The materials on this course Web site are only for the use of students enrolled in this course for purposes associated with this course and may not be retained or further disseminated.

M-BOOK

The M Book at https://conflictresolution.olemiss.edu/m-book/contains many of the University’s values and standards. Annually, the Office of the Dean of Students and the Office of Conflict Resolution and Student Conduct publish the M Book to assist students with understanding their rights and responsibilities. While the M Book is a compilation of many different policies, it is an abbreviated guide of University policies and not a complete digest of all policies. For a complete listing of policies, please visit the University Policy Directory.

STUDENT IDENTITY POLICY

Federal regulations, our accrediting agency (SACS) and university policies require that safeguards are used to ensure that the student who receives the academic course credit is actually the person doing the work. You will need to present your student ID before taking proctored exams and your instructor may verify your identity through live or virtual meetings, or by using an identity verification program.

STUDENT PRIVACY POLICY

The University of Mississippi protects the privacy of all students, including online and distance learning students, through adherence to the Family Educational Rights and Privacy Act of 1974 (FERPA) through compliance with other institutional policies and procedures governing the management and security of protected information of faculty, staff, and students, and by outlining the expectations of privacy for the university community as regards to electronic information.

CELL PHONE USAGE

All cell phones must be turned off and stored during exams as you will not be allowed to use the calculator on your cell phone during exams.

LAPTOP COMPUTER USAGE

Laptop/PC computer usage will be necessary for this class. Homework assignments will be presented in an online format. No notes, reading material, or other study aids shall be permitted to be open on the laptop computer during examinations.

OLE MISS COVID-19 STUDENT SUPPORT RESOURCES

Students are encouraged to visit the University’s Keep Learning site (https://olemiss.edu/keeplearning/) to access information and resources related to COVID-19 support. The site provides links to University student services to facilitate and support learning.

Students with diagnosed health concerns that may affect their compliance with COVID-19 health requirements should contact UM’s Student Disability Services (SDS) Office (https://sds.olemiss.edu) to see if they are eligible for an SDS accommodation as soon as possible.

OLE MISS COVID-19 CONTACT INFORMATION

The University must have accurate contact information, including cell phone numbers, to facilitate student communications and contact tracing. Students should check and update their University contact information (https://olemiss.edu/mystudentprofile)

INTERNET ACCESS

You must have access to the Internet, preferably high-speed Internet, for the duration of this course.

· SOFTWARE You must have access to a computer with the following software installed:

· Microsoft Office - You must have consistent access to a professional word processor and a presentation program. Alternatives to MS Office are WPS Office Free, SoftMaker FreeOffice, OpenOffice, and LibreOffice.

· BROWSERS, PLUG-INS, PLAYERS AND VIEWERS In order to take full advantage of all the features in this course, be sure you have the right technology at your fingertips. This includes:

· Blackboard-supported browser: Firefox 31+, Chrome 36+, Safari 6+ (Mac only), Edge 20+, and Internet Explorer 9+ (Windows only) are compatible with the current version of Blackboard (9.1 201510 as of January 2017). Firefox is preferred on all computers.

· Acrobat Reader

· Flash Player

· QuickTime

I recommend running the Blackboard Browser Check to verify installed plug-ins on your computer.

· HARDWARE

· Computer Speakers

Tech support

The  IT Helpdesk , centrally located in Weir Hall, is open Monday through Friday, 8 a.m. to 5 p.m. The helpdesk offers assistance to Ole Miss students and employees with technology-related issues involving software, hardware and networking. It provides support for email, Wi-Fi, Microsoft Office and other campus-wide applications. Come by Weir Hall or call us at 662-915-5222. Email [email protected] or visit their website for more information.

Tentative Course Outline (with the corresponding chapters in the textbook)

Modifications to this schedule will be necessary as the semester progresses. Any changes will be announced on Blackboard. It is the student’s responsibility routinely open Blackboard and take note of changes.

Module	Topic	Comments	Chapter
1	The nature of real estate and real estate markets; Government controls and real estate markets	Proctorio Practice Test 20 Question Quiz (1)	Chapter 1,2
2	Legal and regulatory determinants of value; Conveying real property interest	20 Question Quiz (2)	Chapter 3,4
3	Market determinants of value	20 Question Quiz (3)	Chapter 5
	EXAM 1	Chapters 1-5
4	Forecasting ownership benefits and value	10 Question Quiz (4)	Chapter 6
5	Valuation: The sales comparison approach	20 Question Quiz (5)	Chapter 7
6	Valuation: The income approach	10 Question Quiz (6)	Chapter 8
	EXAM 2	Chapters 6-8
7	Real Estate Finance: Law and Contracts	10 Question Quiz (7)	Chapter 9
8	Mortgages	20 Question Quiz (8)	Chapter 10,11
9	Brokerage and listing; Contract for sale and closing	20 Question Quiz (9)	Chapter 12,13
10	The effects of Time and Risk; Mortgage Calculation	20 Question Quiz (10)	Chapter 14, 15
	EXAM 3	Chapters 9-15
11	Commercial Mortgages	10 Question Quiz (11)	Chapter 16
12	Sources of Debt and Equity;	20 Question Quiz (12)	Chapter 17,18
13	Investment Decisions; Income Taxation and Value; Leases and property type	Case Study Due 4/15/2021	Chapter 20. 22
	EXAM 4	Chapters 16,17, 18, 20, 22

Exam Schedule	Chapters
Exam 1 (Tuesday 6/8/2021)	1,2,3,4, 5
Exam 2 (Tuesday 6/15/2021)	6,7,8
Exam 3 (Tuesday 6/22/2021)	9,10,11,12,13, 14, 15
Exam 4 (Tuesday 6/29/2021)	16,17,18,20,22

THE CASE STUDY IS DUE ON THURSDAY, JUNE 24 at 11:00PM CENTRAL

As noted above, modifications to the schedule and chapters included may be adjusted at the instructor’s discretion. All changes will be announced in Blackboard. Please pay attention and note change announcements.

PROCTORIO ADDENDUM TO SYLLABUS

Syllabus Statement for Proctored Testing

This course has at least one proctored assessment.  It is the student’s responsibility to download the appropriate interface for the assessment, either Proctorio or Respondus. Please note that your instructor has limited the date and time that the assessment(s) is available.  Please check the course schedule for specific information about the proctored assessment(s).

If you are unable to take your proctored assessments with your own equipment, you may book lab time at the JAC in Oxford to use a webcam/mic-equipped laptop and high-speed internet service. http://online.olemiss.edu/testschedule/index.html

If you have questions regarding proctored testing at a regional campus (Desoto, Grenada, Booneville, Tupelo) contact that campus directly.

The Oxford testing lab (DETL) cannot assist you in making regional campus testing appointments or schedule/reschedule your Oxford appointments. You must use the link provided. All lab appointments must be made two hours in advance.

The contact information for the UM testing centers are:

Desoto: Twyla Loftiss (662) 393-1674 [email protected]

Tupelo: Carrie Cannon (662) 690-2017 [email protected]

Booneville: Kim Gray (662) 720-7781 [email protected]

Grenada: LaTonya Pittman (662) 227-2348 [email protected]

To take any proctored exam, you must have a valid Ole Miss ID, state issued driver’s license, or passport in order to take your exam. THERE ARE NO EXCEPTIONS!

FIN 351 Principals of Real Estate—Online—Syllabus