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PLEASE NOTE THAT THIS WEBSITE IS FOR
THE ON-LINE SECTION ONLY!
Spring 2008 REAE 3325 Real Estate Fundamentals Internet Section
Instructor Contact Information
Office Hours: M W F 9 to 11 AM (please try to contact
Instructor during office hours)
Office Location: Room 631 Business Building
E-mail:
reae3325d@gmail.com
[Also, I thought we might correspond through Second Life (Avatar name Vic McGinnis)
but OIT has restricted access to Second Life on campus. Right now we
cannot enter Second Life from campus. We might give this a try later in
the semester especially if SL access is reestablished.
TVM Completion List (updated 4/29/08))
REAE 3325d Spring 2008 Students:
Office Hours for TVM Finance Tutorial Help - Spring 2008
The TVM tutor this semester is Mr. Yong Ho Seo, (817) 272-5843, room 635
Business Building. The tutoring hours are as follows:
Monday
9:00 to 12:00 PM
Wednesday 5:00 to 8:00 PM
Thursday 1:00
to 4:00 PM
Friday
10:00 to 11:00 AM
If you cannot find the TVM tutor during these listed hours, stop by the
Department Office (room 434) or call (817) 272-3705.
Weekly Assignment (You may certainly work ahead, but at a minimum, you
should keep up with these weekly assignments.)
Week 1 (January 14, 2008):
*Check-in and send your current e-mail address to Dr. Hansz at
reae3325d@gmail.com.
*Read the "General Information" section below.
*Down load, print-out, and read syllabus carefully (see below), view
Orientation video clip, and tour this website.
*Visit the student blog site
http://realestatefundamentals.blogspot.com/
*Purchase textbook, TVM tutorial, and financial calculator (you need to learn
how to use your own financial calculator).
*Read chapters 1 and 13 and view video clips for these chapters (as always do
end of chapter problems).
*Start the TVM tutorial.
*Record the four exam dates in your calendar (also include the TVM deadline
date). See me this week if you have any conflicts.
Week 2 (January 21, 2008):
*Record the four exam dates in your calendar (also include the TVM deadline
date). See me this week if you have any conflicts.
*Read chapter 14 and view video clip (as always do end of the chapter problems).
*Double check and make sure that you have recorded the four exam dates and TVM
deadline in your calendar.
*Continue with TVM tutorial or turn in a Prior Completion form to Dr. Hansz or
the Department (room 434).
*Practice with your calculator (the time value of money menu).
-Make sure you you know how to set your calculator's "payments per year"
function.
-Know how to switch back and forth between "Begin Mode" and "End Mode."
Week 3 (January 28, 2008): TVM Boot Camp
*Visit class blog.
*Record the four exam dates with the exam location (room 241 Business Building)
in your calendar.
*Turn in TVM prior completion form or complete the TVM Turorial.
*Read "Review Materials for Real Estate" pdf packet and try problem sets 1,
2, and 3. This is found near the Ch 14 materials.
*View the Video/Audio Clips for "Review Materials for Real Estate" and check
answers to problem sets 1, 2, and 3.
*Read chapter 15.
*Send two pictures to reae3325d@gmail.com
if you like. (see blog for details).
Week 4 (February 4, 2008): Exam 1 Week
*Read Chapter 15. Make sure you understand mortgage payments, mortgage
balances, and loan amortization.
*Make sure you have the exam 1 date (see below), time, and location (Room
241 Business Building) in your schedule.
*The exam will cover chapters 1, 13, 14, and 15. Also, this exam will have
emphasis on TVM.
*Please bring your UTA photo ID, a Scan-tran answer sheet (as specified in the
syllabus), pencils, and your calculator (see additional exam instructions
below).
Week 5 (February 11, 2008):
*Read Chapters 2 and 3 (lots of material in these chapters), view video/audio
clips, do practice problems etc. (the usual routine for each chapter).
*Review Exam 1. Click on this link to download a WMV file.
Exam 1 review file
*Individual exam scores (plus any applicable bonus points) will be posted on
WebCT.
*Please note that as of Sunday, scores have not been posted to WebCT.
There is a technical issue with uploading our class roster into WebCT and the
HelpDesk is looking into this.
*Please note that I will not have office hours Wednesday of this week. I
have off-campus meetings from 9 AM to 7 PM.
ATTENTION!: If you go to WebCT (www.uta.edu/webct)
and log-in with your UTA user name and ID,
you should find our class and your Exam 1
score (as a %) posted. Include in your score
is any bonus for early TVM completion and
blog participation. If you haven't already,
please review the Exam 1 audio/video clip
(above). The class median was a 75%.
(If you are interested in the reason for the
delay, here it is...Our 2008 class roster
was loaded into REAE 3325 for Spring of
2007.)
TVM Bonus: 10 students received the full
5-point bonus for early TVM submission. Two
students turned in the TVM tutorial before
the exam, but the TVM grader found a
significant problem with the submitted
answers. Sanjukta has e-mailed these two
students (Daniel and James) for follow-up
(please check your e-mail).
Week 6 (February 18, 2008):
*Read Chapter 3 view video/audio
clips, do practice problems etc. (the usual routine for each chapter).
*Make sure you have the Exam 2 date on your calendar (first week in March).
Week 7 (February 25, 2008):
*Read Chapter 4, 5, 6 view video/audio
clips, do practice problems etc. (the usual routine for each chapter).
*Exam 2 coming soon. Make sure the date on your calendar (first week in March).
Week 8 (March 3, 2008):
*Read Chapter 7 view video/audio
clips, do practice problems etc. (the usual routine for each chapter).
*Review for EXAM 2.
*Exam 2 on Saturday, March 8th at 10 AM Room 241. Exam 2 will cover
chapters 2, 3, 4, 5, 6, and 7. Please bring your photo ID,
pencils, calculator, and Scan-tron answer sheet (exam will be 50 or fewer
multiple-choice style questions).
Week 9 (March 10, 2008):
*Review Exam 2. Click on this link to download a WMV file.
Exam 2 Review Clip
*Read Chapters
8 and 9 view video/audio
clips, do practice problems etc. (the usual routine for each chapter).
*Attend some Business Week presentations! Many of the speakers have real
estate related topics.
See realestateprogram.blogspot.com for speaker schedules.
Week 10 (March 17, 2008) SPRING BREAK:
*Read Chapter 10 view video/audio
clips, do practice problems etc. (the usual routine for each chapter).
Week 11 (March 17, 2008):
*Read Chapter 11 view video/audio
clips, do practice problems etc. (the usual routine for each chapter).
Week 12 (March 31, 2008):
*Chapter 11 (continued, this is a big chapter) view video/audio
clips, do practice problems etc. (the usual routine for each chapter).
Week 13 (April 7, 2008):
*Chapter 11 (continued, this is a big chapter) view
video/audio clips, do practice problems etc. (the usual routine for each
chapter).
*REMINDER: Third exam is Saturday, April 19th. TVM final deadline is the
following Saturday.
Week 14 (April 14, 2008):
*Chapter 17
and 18 view video/audio clips, do practice problems etc. (the usual routine for each
chapter).
*EXAM 3 is Saturday, April 19th at 10 AM in Room 241. Exam 3 will
cover chapters 8, 9, 10, 11, 12, 17, 18, and 19.
Please bring your PHOTO
ID, pencils, calculator, and Scan-tron answer sheet. (TVM final deadline is the
following Saturday.)
Week 15 (April 21, 2008):
*Read Chapter 16 (the final is comprehensive but I will give extra emphasis to
Ch. 16), view video/audio
clips, do practice problems etc. (the usual routine for each chapter).
*Review Investment Problem (IP) clips. This is an optional bonus problem
that will be part of the final exam. There will be more information
regarding the IP posted on the blog.
*Review Exam 3. Click on this link to download a WMV file.
Exam 3 review file
*Individual exam scores will be posted on WebCT.
*TVM tutorial deadline is Saturday, April 26th.
Week 16 (April 28, 2008) Last week of class:
*Continue with Chapter 16 (the final is comprehensive but I will give extra emphasis to
Ch. 16) and read Chapter 20, view video/audio
clips, do practice problems etc. (the usual routine for each chapter).
*FINAL EXAM is schedule for Saturday, May 10th at 8:00 AM room 241. Please
bring your photo ID, pencils, Scan-tron form, and calculator. The final is
cumulative but emphasis will be placed on Chapter 16.
Important Dates (please put these dates in your schedule during the first
week of the semester!))
Exam 1 (Saturday, February 9th from
10 AM to 11:00 AM Room 241 Business Building – Do not arrive late!)*
Exam 2 (Saturday, March 8th from 10 AM to 11:00 AM
Room 241 Business Building – Do
not arrive late!)*
Exam 3 (Saturday, April 19th from 10 AM to 11:00 AM
Room 241 Business Building – Do
not arrive late!)*
TVM Tutorial Deadline Friday, April 25th
Cumulative Final Exam: Saturday, May 10th from 10:00
AM to 12:30 PM Room 241 Business Building*
*Must bring Scan-tron,
financial calculator, pencils, and student ID to all exams.
If
you have a conflict or difficulty with any of these important dates listed
above, contact the Instructor during the first week of class.
Overview of Class and Class Schedule (Syllabus and Orientation Video Clip)
syllabus (pdf, please download,
print-out, and read first)
Orientation Video/Audio Clip*
*Note: This is a .WMV (file name Orientation.wmv) file. You can try to
click directly on this link to start your media player, however, you will likely
need to download this clip on to your desktop, then double-click on the
downloaded file. To download this file, "right click" on the link above.
In the menu that appears, select "Save target as..." and save this file to your
desktop. Go to your desktop and double-click on the file to start.
Internet Resources (3 main on-line resources or tools for this course, in
addition to the textbook):
www.uta.edu/faculty/hansz/3325/distance/main.htm This webpage (see
"Important Links and Resources" below)! This is the
main page for weekly assignments, announcements, video clips, practice problems,
etc.. You need to use and check this page regularly (3 to 5 times per
week).
http://realestatefundamentals.blogspot.com/ Student blog. This blog is
set-up primarily for you! You can discuss text material and other real
estate issues. I will check and post to this blog occasionally, but this
is set-up primarily for student-to-student interaction related to the real
estate material only. Please check this site regularly.
https://webct.uta.edu/ WebCT to report
grades. I am hoping to use WebCT for reporting grades only. Please,
never contact me through WebCT. I only use WebCT to record grades.
You only need to check this site after exams (please give me at least 2 days
after an exam to post grades).
Important Links and Resources
Chapter Notes, Video Clips, Presentation Aids and Study Materials
(Most important link and resource for this course!)
http://realestatefundamentals.blogspot.com/ (Student Blog)
https://webct.uta.edu/ (to report grades
only)
General Information (Please read very carefully before registering for
this course!)
- This is a DISTANCE LEARNING SECTION. Students registering for this
section should be highly motivated, disciplined, and capable of self-study
and independent learning. Also, you should expect to put in 50% to
100% more time into a distance learning class over and above a traditional
face-to-face class. If you have any doubts about your
motivation, discipline, ability to learn independently or available time, I highly
recommend that you consider taking one of the other five traditional
face-to-face section of REAE 3325 (offered mornings, afternoons, evenings,
and even on Saturdays). I am teaching a traditional section of REAE
3325 on MWF from 8 to 8:50 AM in room 241. Anyone from this class is
invited to attend the lectures.
- Your primary information sources for this course will be your (1) text book,
(2) video clips, (3) practice problems, and (4) student blog. In
addition, I will have office hours where you
may ask specific questions.
- TVM ANNOUNCEMENT: You must complete the Time Value of
Money (TVM) Finance Tutorial to receive credit for this course. The TVM Finance Tutorial is a Department
requirement of all REAE 3325 and FINA 3313 students. If you have
already completed the TVM Finance Tutorial in FINA 3313 you DO NOT have to
do it a second time. You may submit a TVM Finance Tutorial prior
completion sheet to Marlene Tanner, Department of Finance and Real Estate,
Room 424 COBA, Box 19449, Arlington TX 76019-0449. Click
here to
down load a pdf of the TVM Prior Completion Form.
- TVM Finance Tutorial Office Hours: The absolute due date for TVM
tutorial completion is April 25th. For any question regarding the TVM Finance Tutorial, please contact the TVM tutor
(office hours and contact information found above).
- EXAMINATIONS (4 total on campus in room 241 Business Building): Three midterm and final exam.
Eam 1 (Saturday, February 9th from 10 AM to 11:00 AM – Do not arrive
late!)*
Exam 2 (Saturday, March 8th from 10 AM to 11:00 AM – Do
not arrive late!)*
Exam 3 (Saturday, April 19th from 10 AM to 11:00 AM – Do
not arrive late!)*
Cumulative Final Exam: Saturday, May 10th from 10:00
AM to 12:30 PM*
*Must bring Scan-tron, basic
calculator, pencils, and student ID to all exams.
- GRADES will be posted on WebCT.
https://webct.uta.edu (login using your UTA username and password)
Please do not call or e-mail requesting grades!
- TEXTBOOK, TVM Finance Tutorial, and SCAN-TRON: The
course text book (see syllabus for title and author) can be purchased from
the UTA Bookstore. We are using the same textbook as all the other
REAE 3325 sections. You may purchase the materials in person or on-line
(the bookstore will mail them to you) at
www.uta.bkstr.com . If you have any problems with accessing the
course materials at the Bookstore you may call (817) 272-3526. You
will also need several Scan-tron multiple-choice test forms. The
specific Scan-tron form is Form No. 882-ES and can also be purchased at the
UTA bookstore.
- FINANCIAL CALCULATOR: You
will also need a basic financial calculator which can be purchased at the UTA bookstore, Wal-Mart, Circuit City, Fry's, and other retail outlets.
Most students use a Texas Instruments (TI) or Hewlett Packard (HP) brand
calculator.
- OFFICE HOURS: For Spring 2007, my REAE 3325 office hours will be from
9:00 AM to 11:00 AM on Monday, Wednesday, and Friday. I will try my
best to be available via phone (817 272-5843), e-mail
reae3325d@gmail.com, and in
eventually Second Life
(more details to come). I encourage students to use my designated
office hours. If these times are not convenient, I would suggest
taking another section of REAE 3325 (offered mornings, afternoons, evenings,
and even on Saturdays).
- VIDEO CLIP VIEWING INFORMATION: You must have a reliable computer, Internet connection, and a recent
version of MS Internet Explorer (IE) browser (video clips can be viewed in
IE only). For video clip viewing, the Firefox browser will not work. I cannot help you with any technical problems so please look
into your available resources before registering for the course. If you have trouble with your computer,
Internet connection, or browser, this distance learning format will not be
best for you. You can reach the University HelpDesk at (817) 272-2208
or e-mail helpdesk@uta.edu. Or,
visit the Help Desk in person at the first floor of the Main Library (the
best way if you are on campus).
Other Downloads
Amortization Table
Investment Problem Spreadsheet
Relevant Links
Anyone interested in receiving weekly e-mail updates on the
Texas real estate market? To subscribe go to
http://recenter.tamu.edu
Home-Buyers Guide:
(http://recenter.tamu.edu/pdf/1044.pdf)
Homeowner’s Guide:
(http://recenter.tamu.edu/pdf/1415.pdf)
Landlords and Tenants Guide:
(http://recenter.tamu.edu/pdf/866.pdf)
Texas Real Estate Sales and
Broker Information:
http://www.trec.state.tx.us/
Fun Stuff
Cool Homes (link provided Karen Oberman): The URL below is really
long, but it should take you to a link with a couple of really cool houses. The
videos are about 5 minutes each, so don’t plan on watching them all at once….
But there are some really neat looks to some very unusual properties and a neat
history about them.
http://video.msn.com/video.aspx?mkt=en-us&tab=m65&vid=e5d558f9-4959-4e7f-b66d-1fcad65fe905&playlist=videoByUuids:uuids:70a923f5-910b-4054-a41d-a6d7035804d1,84d730be-296b-4d63-8aeb-75511f1b81f5,db5fd4d5-6a44-45f3-82a1-49b097fb4611&from=MSNHP>1=10755
Time Value of Money Formulas (Although most students use a financial
calculator, I will put these formulas on each exam)
Future value of a
lump sum: FV = PV(1+i)n
Present Value of
a Lump Sum: PV = FV [1/(1+i)n ]
Present Value of
an Annuity: PVA = A[(1-(1/(1+i)n ))/ i]
Future Value of
an Annuity: FVA = A[((1+i)n -1))/ i]
Sinking Funds:
SFP = FVA [ i /
((1+i)n -1))]
Mortgage Payments:
PMT = PVA [ i / ((1 -
(1/(1+i)n )))]
General Exam Instructions:
-
Please answer
the following questions by selecting the best answer on your Scan-tron
answer sheet. Be very careful of erasure marks. Your mark on the Scan-tron
answer sheet is your final answer. I suggest circling all answers in your
test booklet and filling in the answer sheet at the end. For the True/False
questions, ‘A’ equals ‘True’ and ‘B’ equals ‘False.’ Please note:
-
Keep your
quiz booklet closed until the quiz is officially started.
- You will need a
basic calculator (no manuals), pencils, and a Scan-tron answer sheet.
Place your photo ID on the desk, photo-side up. Put all other materials
away.
- Do not share
calculators during the exam.
- Remove baseball caps.
- Turn-off/put away
all pagers/cell phones and other communication devices.
- Write your name and
‘REAE 3325 Exam’ on the Scan-tron answer sheet.
- You may mark
(write-on) the exam booklets.
- Do not look around
the room or make any noise. If you have a question, raise your hand and
I will come to you.
- Keep your Scan-tron
answer sheet and test booklet in front of you. (Don't let the person
behind you look off your papers.)
- Answer the questions
that you know and return to the question you don’t know toward the end.
Do not spend too much time on any one question.
- Please watch your
time as we must finish on-time.
- Do not remove test
booklets from classroom.
- Concentrate and do
your best. Good luck!
Strategies for Success
For each chapter
•
Read the assigned text
chapter and view any video clips posted on the class website as
homework.
•
Download the chapter notes
(found on my website) and review the notes.
•
Try the end of chapter
problems.
•
Download the answers to
selected end of chapter problems (found on my website) and
review your answers.
•
Take notes during the
video clips and rewrite/organize your notes afterwards.
•
Read the text chapter a
second time.
•
Download and complete the
chapter true/false questions and discussion questions.
Other study suggestions
•
Make flashcards.
•
Read your notes into a
tape recorder (and playback).
•
Take notes as you read the
text.
•
Combine (rewrite) your
class notes and text notes into a single set of notes.
•
Study several hours per
day everyday (do not wait until the night before the exam).
•
Study with a friend or
small group (discuss terms and topics, try problems together, and
quiz each other). You could meet virtually in Second Life!
•
Do the case studies
accompanying the text found on the student CD (not a requirement).
General comment
•
To protect your privacy,
exam scores and final grades will not be posted in public spaces,
e-mailed, or released over the phone. I will post grades on WebCT.
Answers to "Review Materials for Real Estate Fundamentals" Practice Problems
TVM Problem Set 1:
1. $24,464,43
2. $25,093.31
3. $1,738.91
4. $4,755.19
5. $675,764.89
6. $14,381.74
TVM Review: Problem set 2 Answers:
1)
10% compounded semi-annually (1.05^2 = 1.1025; 1.0238^4 = 1.0984)
2)
19,236.15
3)
98,111.31
4)
5,575.46
5)
22,601.66
6)
15.94%
7)
6,357.56
TVM Review: Problem set 3 Answers:
1)
ANN: 15 – 25,288.30 25-20,519.45 MO: 15-2,067.95 30-1614.72
2)
14,043.41
3)
Yes, NPV = 10,850.30
4)
13.22%
5)
PMT = 103,873.36
a.
Balance end of year 5 equals 961,283.21
b.
Balance end of year 15 equals 801,472.49
6)
PV = 854,972.16
7)
79,612.63 + 220,436.31 = 300,048.94
8)
PMT = 638.58 (724.26 – 638.58 = 85.68)
9)
IRR = 16.2%; NPV = 1,306.20
10)
68,640.81
Problem Set 4:
1) a) 19,876.60 b)
1,903,479.15
2)
48,076.30 + 159,263.83 = 207,340.13
3) Investment 1 IRR = 9.57%
Investment 2 IRR = 10.18% or 9.94% assuming annual compounding
4)
N=60, I = 12%, Pmt = 657.56, FV= 88,000 then 657.56 (pmt) + 120.00
(taxes, insurance, maintenance) = $777.56 rent
5)
$1,365.86
6)
8.5%
7)
12.14%
8)
NPV = $209.94 IRR = 12.27%
9)
a) 10.36% b) 4,378.29
10)
163,028.46
11)
1,294.88
12)
137,243.36
Qualifying the Buyer Problem 1:
PI=$614.30 (n=260, i%=.10/12, PV=70,000, FV=0, solve for PMT)
MHE = $614.230+ $84+$21+$24=$743.30
TMD=$743.30+$380+$65=$1,188.30
SMI=$3,200+$240=$3,440
MDR= MHE/SMI = $743.30/$3,440=.2161 --> Make the loan
TDR=TMD/SMI=$1,188.30/$3,440=.3454 ---> Make the loan
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