Syllabus-Fall 2012 3381-1

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Lecturer: Chuck Dannis

Office Hours: By appointment at SMU – most any time and before or after class - or By appointment - anytime Crosson Dannis, Inc. (www.crossondannis.com) 6060 North Central Expressway, Suite 860 Dallas, Texas 75206 214/932-1818 (voice mail) Mobile: 214/707-1851 (voice mail) Home: 214/340-9124 (message) Fax: 214/361-2632 E-Mail: cdannis@crossondannis.com (do not use SMU email)

Text: None required for this module. Approximately 100 pages of text material from the 13th Edition of “The Appraisal of Real Estate” (Appraisal Institute: Chicago, IL; 2008) will be handed out the first day of class (copied with the permission of the Appraisal Institute. This is the textbook used in RE 4382.)

Class Notes: I will hand out class notes at the beginning of each class. All notes will be posted to Blackboard the day of the class.

Quizzes/Test: I will give approximately 5 ‘pop’ tests that will cover the reading material assigned for that class. I will use these quizzes to take roll as well. These quizzes will represent 10% of your total grade in my module. You will have one final test at the end of my module (90% of my module grade.) Each module represents 1/3 of your total grade for the class.

Evaluations: Course evaluations will be administered at the beginning of class ON BLACKBOARD. (Date TBD) Students will be given 10 MINUTES to complete the evaluation

online (you will need your computer).

Student Learning/

Outcome Objectives:

This module will introduce the student to the business of real estate: basic property types in commercial real estate will be discussed. The students will gain a general understanding of the demand for real estate, how it is valued and potential investment criteria.

Syllabus-Fall 2012 3381-2

RE – 3381 Fall 2012 – Page 2

Disability Accommodations:

Disability Accommodations: Students needing academic accommodations for a disability must first be registered with Disability Accommodations & Success Strategies (DASS) to verify the disability and to establish eligibility for accommodations. Students may call 214-768-1470 or visit http://www.smu.edu/alec/dass to begin the process. Once registered, students should then schedule an appointment with the professor to make appropriate arrangements. See DASS attachment.

Excused Absences for University Extracurricular Activities:

Excused Absences for University Extracurricular Activities: Students participating in an officially sanctioned, scheduled University extracurricular activity should be given the opportunity to make up class assignments or other graded assignments missed as a result of their participation. It is the responsibility of the student to make arrangements with the instructor prior to any missed scheduled examination or other missed assignment for making up the work. (University Undergraduate Catalogue)

Religious Observance:

Religiously observant students wishing to be absent on holidays that require missing class should notify their professors in writing at the beginning of the semester, and should discuss with them, in advance, acceptable ways of making up any work missed because of the absence. (See University Policy No. 1.9.)

Syllabus-Fall 2012 3381-3

RE – 3381 Fall 2012 – Page 3

Class 1: August 20, 2012

Class Overview and Introduction : Lynch, Beasley and Dannis

Reading Material Assigned; Chapters 1 and 2: Excerpts from

“The Appraisal of Real Estate" Handout

Class 2: August 22, 2012

Lecture: A. Brief examination of the real estate market

B. Historical perspective of real estate appraisal

C. The Appraisal Process

Reading Material Assigned; Finish Chapters 1 and 2: Excerpts from

“The Appraisal of Real Estate" Handout

Class 3: August 27, 2012

Lecture: A. Four main groups in real estate…and their subsets

B. Value definitions and concepts

C. Neighborhoods and market areas

Reading Material Assigned; Chapters 10 & 12: Excerpts from

“The Appraisal of Real Estate” Handout

Class 4: August 29, 2012– Real Estate Market and Property Analyses

Lecture: A. Concepts of Land

1. Economic Concepts

2. Physical Concepts

B. Improvements to Land

C. Highest and Best Use

Reading Material Assigned: Chapter 13: Excerpts from

“The Appraisal of Real Estate” Handout

Class 5: September 3, 2012 – Labor Day!

No Class!

School Holiday!

Syllabus-Fall 2012 3381-4

RE – 3381 Fall 2012 – Page 4

Class 6: September 5, 2012 – Sales Comparison Approach

Lecture: A. Concept

B. Strengths and Weaknesses

C. Process/Examples

Reading Material Assigned; Chapters 16 & 17: Excerpts from

“The Appraisal of Real Estate” Handout

Class 7: September 10, 2012 – Cost Approach

Lecture: A. Concept

B. Strengths and Weaknesses

C. Process/Examples

Reading Material Assigned; Chapter 20: Excerpts from

“The Appraisal of Real Estate” Handout and “Market Analysis in the Appraisal Process” (follows Chapter 20 in handout)

Class 8: September 12, 2012 – Income Capitalization Approach

Lecture: A. Concept

B. Strengths and Weaknesses

C. Process/Examples

Class 9: September 17, 2012

Lecture: A. Investing and Making Money in Real Estate: Is it really that easy?

B. Credit Scores: Importance to you

C. The real estate economy – is there a place or a job for you?

Class 10: September 19, 2012

Module Exam Review!

Class 11: September 24, 2012 – Module Exam!

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RE 3381 Finance Module Course Outline fall 2012 2

Software: A website reference www.mhhe.com/bf14e has been included with the 14th edition of

your textbook. It contains EXCEL spreadsheets/templates and may be useful for many of

the homework assignments this part of the class.

Website: Information on assignments/changes, important terms that you should know from reading assignments,

check figures for homework and various messages from me will be posted on the Blackboard (BB)

website. Go to: http://smu.edu/cms/ . (Use your same User ID.and Password as ACCESS.).

The textbook supplement website: www.mhhe.com/bf14e or

www.mhhe.com/business/finance/realestonline also includes Real Estate Outline. This contains

supplementary material including quiz questions, etc. You may find this site useful as you study during

the course.

Supplements: Hard copies of any course handouts, etc. will be provided to you at no charge courtesy of

the Real Estate Department or you can obtain the information off of Blackboard. “Too

Big Too Fail” DVD on reserve in the BIC.

Homework: Students are responsible for completing the assigned chapter problems. Chapter problems do not

need to be handed in, only the on-line chapter quizzes. The solutions sets for the problems will

be distributed for each chapter assigned the following class. Certain problems and solutions will

be worked during the class to help students.

Honor Code Policy: If it is determined that a student has cheated on any work submitted for academic credit, a grade

of zero will be given for that assignment, quiz, or exam. If the student feels wrongly accused,

he/she has the option of appealing that decision to the Honor Council. I will abide by the

decision of the Honor Council. If the Honor Council also finds the student guilty of cheating and

recommends that the student receive a "HV" for the course, I will follow the Honor Council's

recommendation. An "HV" carries the weight of an "F" and will remain on the student's

transcript for three years after graduation.

RE 3381 Finance Module Course Outline fall 2012 3

Grading Policy: Finance Chapter On-line Quizzes 20%

Group paper – 2008 Financial Crisis 25%

Individual Acquisition Assignment 25%

Finance Module Examination 30%

Finance Module Final Grade equals 33% entire RE3381 grade

A 94 - 100 B+ 86 - 89 B- 80 – 82 C 72 – 75 D 60 - 69

A- 90 - 93 B 82 - 85 C+ 76 - 79 C- 70 – 72 Don’t 0 - 59

Attendance is MANDATORY

This provides students with a reminder not only of the policies themselves, but also of how to access the services and accommodations available.

Disability Accommodations: Students needing academic accommodations for a

disability must first be registered with Disability Accommodations & Success Strategies (DASS) to verify the disability and to establish eligibility for accommodations. Students may call 214-768-1470 or visit http://www.smu.edu/alec/dass.asp to begin the process. Once registered, students should then schedule an appointment with the professor to make appropriate arrangements. (See University Policy No. 2.4; an attachment describes the DASS procedures and relocated office.)

Religious Observance: Religiously observant students wishing to be absent on holidays

that require missing class should notify their professors in writing at the beginning of the semester, and should discuss with them, in advance, acceptable ways of making up any work missed because of the absence. (See University Policy No. 1.9.)

Excused Absences for University Extracurricular Activities: Students participating in

an officially sanctioned, scheduled University extracurricular activity should be given the opportunity to make up class assignments or other graded assignments missed as a result of their participation. It is the responsibility of the student to make arrangements with the instructor prior to any missed scheduled examination or other missed assignment for making up the work. (University Undergraduate Catalogue)

RE 3381 Finance Module Course Outline fall 2012 4

Class 1: Wednesday – September 26, 2012

Class Overview and Introduction : Lecture: A. Introduction and purpose Finance Module B. Brief examination of the real estate asset class types C. Begin discussion of Chapter 3

Reading Material Assigned; Chapter 3: Study Key Terms and have a thorough understanding. Complete Chapter 3 “Quiz” at www.mhhe.com/bf14e Print out results and turn in next class.

Bring calculator to next class.

Class 2: Monday – October 1, 2012

Lecture: A. Chapter 3 “The Interest Factor in Financing” B. Financing Calculator workshop

Homework problems Chapter 3: 1, 2, 4, 5 and 13. Reading Material Assigned; Chapter 4. Complete Chapter 4 “Quiz” at www.mhhe.com/bf14e Print out results and turn in next class. Bring calculator to next class.

Class 3: Wednesday – October 3, 2012

Lecture: A. Discussion on Chapter 4 B. Mortgage Application Process & Underwriting Homework problems: Chapter 4 - 2, 5, 7, 8, 9, 10, 13.

Class 4: Monday – October 8, 2012

Lecture: A. Discussion Chapter 5 B. Classroom Exercise

Reading Materials Assigned: Chapter 5 and do problem 2.

Complete Chapter 5 “Quiz” at www.mhhe.com/bf14e Print out results and turn in next class.

RE 3381 Finance Module Course Outline fall 2012 5

Class 5: Wednesday – October 10, 2012

Lecture: A. Discussion Chapter 7 B. Classroom Exercise Reading Materials Assigned: Chapter 7

Homework problems: Chapter 7 problem 2 a & b Complete Chapter 7 “Quizzes” at www.mhhe.com/bf14e Print out results and turn in next class.

FALL BREAK – October 15th & October 17th Class Cancelled

Class 6: Monday, October 22, 2012

Lecture: A. Discussion Chapter 8 B. Classroom Exercise

Reading Material Assigned: Read Chapter 8 Homework problems: Chapter 8 – problems 1 and 3 (use template on BlackBoard) Complete Chapter 8 “Quiz” at www.mhhe.com/bf14e Print out results and turn in next class.

Class 7: Wednesday, October 24, 2012 A. Discussion Chapter 9 B. Introduction to Income Producing Properties Reading Material Assigned: Chapter 9

Class 8: Lecture:

Wednesday, October 24, 2012 INDIVIDUAL PROJECT AND GROUP PAPER DUE A. Introduction to Investment Analysis and Taxation of Income

Properties B. Perform Chapter 11 problem 11-2 together C. Module Exam Review

BRING LAPTOP TO CLASS TO COMPLETE COURSE

EVALUATION Homework: Read Chapter 11

Class 9: Monday, October 29, 2012 - Module Exam

Lecture:

- 1 -

RE 3381 REAL ESTATE FUNDAMENTALS Fall, 2012

REAL ESTATE LAW MODULE

Instructor: Paula L. Beasley, Attorney at Law; J.D., Southern Methodist University; B.A., Louisiana Tech University

Place: Room 279, Crow Building, Edwin L. Cox School of Business, SMU Law Module: Fall 2012, Mondays and Wednesdays, 3:30 - 4:50 p.m.,

beginning Wednesday, October 31, 2012 through December 3, 2012 Exam for module: December 12, 2012, 3:00 – 6:00 p.m. – Exam over Real Estate Law Module only Office hours: I am available to visit with you typically between 9:30 a.m. to 6:00 p.m. by email,

telephone, or in person. Feel free to call me or email me between these hours at my office or on my cell phone.

Office Address: Scheef & Stone, L.L.P. 500 N. Akard Street, Suite 2700 Dallas, Texas 75201 Office Phone: 214.706.4235 Mobile Phone: 214.803.4804 E-mail: paula.beasley@solidcounsel.com (use this instead of my SMU email) Websites: www.solidcounsel.com; www.scheefandstone.com Text: Real Estate Finance and Investments, 14th ed., by Brueggeman and Fisher (BF)

published by MGraw Hill-Irwin Co., 2011 Handouts: Will be distributed in class and/or posted on Blackboard. Date Instructor Topic/Reading Assignment Oct 31 (W) Beasley Introduction to course; Property, Deeds and Title; Reading

assignment: Real Estate Finance & Investments, Chapter 1, pages 1-15, and handouts

Nov 5 (M) Beasley Financing Transactions in Real Estate; Reading assignment: Real

Estate Finance & Investments, Chapter 2, pages 16-26, and handouts

- 2 -

Nov 7 (W) Beasley Breach of Contract, Default and Remedies; Reading assignment: Real Estate Finance & Investments, Chapter 2, pages 26-31.

Nov 12 (M) Beasley Foreclosure; Reading assignment: Real Estate Finance &

Investments, Chapter 2, pages 31-36, and handouts Nov 14 (W) Beasley Leases; Reading assignment: Real Estate Finance & Investments,

Chapter 9, pages 262-263, 266-273, 280, 287, 290, and handout Nov 19 (M) Beasley Brokerage and Agency; Reading assignment: Handouts Nov 26 (M) Beasley Contracts; Reading assignment: Real Estate Finance &

Investments, Chapter 9, pages 254-256 and handouts Nov 28 (W) Beasley Closings; Reading assignment: Real Estate Finance &

Investments, Chapter 8, pages 239-251; Dec 3 (M) Beasley REVIEW

Class Evaluations (bring laptop computers) Dec 12 (W) Beasley 3:00 – 6:00 p.m. EXAM over 3rd Module – Real Estate Law only GRADING POLICY:

Most, if not all of the questions on my exam and quizzes will be objective in nature, calling for a single correct answer, with the typical format being fill-in-the-blank, true/false, or definitions calling for the word being defined to be provided. Open books and notes will not be allowed for the exam or any quizzes. Any cheating will automatically result in a failing grade for the exam or quiz. On my exam there will usually be more objective questions asked than you are required to answer, so before your exam is handed in and graded, you will be able to select which of the objective questions will be counted toward your grade. Your grade will be based upon an average of the quizzes given and the exam. The quizzes will count for ¼ of the grade and the exam will count for ¾ of the grade. Exam and Quiz Policy: All exams are closed book and class notes are not allowed as a reference. Make up quizzes and exams are not allowed. If you are going to be absent for a quiz or the exam, you must notify me well in advance of the quiz or exam and accommodations will be made at my discretion. Attendance: I will take attendance at each class and reserve the right to provide extra credit for attendance. Possible Quizzes: I reserve the right to give quizzes during the semester. These quizzes are likely to occur and will be given if I deem them necessary to improve class participation and/or to enhance understanding of certain subject matter.

- 3 -

Learning Outcomes: - Students will understand the various forms of real estate ownership and interests; - Students will learn the basics of financing real estate acquisitions, specifically real estate lien

notes and deeds of trust; - Students will learn the basic provisions of a real estate contract for the sale or purchase of

property and the remedies for breach/default of such a contract; - Negotiation of a real estate contract, the diligence process and closing the transaction will be

covered; - Post-default foreclosure of real estate will be covered so that students will understand the

process and results of a foreclosure; - Leases will be covered so that students will understand base lease provisions and their purpose;

and - Agency and brokerage will be covered so that these principles are understood and can be

applied. Honor Code Policy: If it is determined that a student has cheated on any work submitted for academic credit, a grade of zero will be given for that assignment, quiz, or exam. If the student feels wrongly accused, he/she has the option of appealing that decision to the Honor Council. I will abide by the decision of the Honor Council. If the Honor Council also finds the student guilty of cheating and recommends that the student receive a “HV” for the course, I will follow the Honor Council’s recommendation. An “HV” carries the weight of an “F” and will remain on the student’s transcript for three years after graduation. Disability Accommodations:

A disability must first be registered with Disability Accommodations & Success Strategies (DASS) to verify the disability and to establish eligibility for accommodations. Students may call 214-768-1470 or visit http://www.smu.edu/alec/dass.asp to begin the process. Once registered, students should then schedule an appointment with the professor to make appropriate arrangements. (See University Policy No. 2.4; an attachment describes the DASS procedures and relocated office.) Religious Observance:

Religiously observant students wishing to be absent on holidays that require missing class should notify their professors in writing at the beginning of the semester, and should discuss with them, in advance, acceptable ways of making up any work missed because of the absence. (See University Policy No. 1.9.)

Excused absences for University Extracurricular Activities:

Excused Absences for University Extracurricular Activities: Students participating in an officially sanctioned, scheduled University extracurricular activity should be given the opportunity to make up class assignments or other graded assignments missed as a result of their participation. It is the responsibility of the student to make arrangements with the instructor prior to any missed scheduled examination or other missed assignment for making up the work. (University Undergraduate Catalogue) Any further questions about these policies should be addressed to Professor Tom Tunks (214-768-3454)