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**********************************************Get well soon Kenneth!!!!!!!
Fall 2005 REAE 3325
Syllabus
Review
Materials for RE Fundamentals
Chapter Notes Presentation Aids and Study Materials
TVM Completion List
Announcements:
- Final exam on Monday, December 5th at 8 AM!
- Quiz 3 on Wednesday, November 16th!
- Watch the deadline to drop a class. Friday October 14th is the
mid-semester date.
- I will be in Chicago at the Financial Management Association
conference. No office hours on Friday October 14th. Luis will
lead the class to cover the scheduled material. I will check my voice
mail Thursday and Friday and I may or may not have Internet access to check
my e-mail.
- Quiz 2 on Wednesday, October 12th. Quiz 2 will cover chapters
2, 3, 4, 5, 6, 7, and 19. The format is multiple choice (approximately
40 questions). General exam instructions are found on this web page
(see below). I will put the TVM formulas on the exam (also see below).
Please bring your calculator, pencils, student ID, and a Scantron answer
sheet #882E (available at the campus bookstore). Please note that I am
moving Chapter 16 toward the end of the semester. We have some
catch-up time schedule for December. Chapter 16 will not be on Quiz 2.
- Guest Speaker: Jeremy Normand, Topic: Property Insurance, on Monday,
October 10th.
- Residential Construction video on Friday, October 7th.
- Just a reminder, please complete your Time Value of Money Tutorial as
soon as possible. Why wait, we are using TVM concepts now! The
Time Value of Money Tutor is Ms. Sheryl-Ann Stephen. Office hours are
held in room 628 Business Building from 5 PM to 8 PM Monday and Wednesday
and 11 AM to 1 PM on Tuesday and Thursday. Phone number is 817
272-3083.
- Quiz 1 on Monday, September 12th. Quiz 1 will cover chapters 1,
13, 14 (TVM including Review Materials for RE Fundamentals), and 15.
The format is multiple choice (32 questions (6 of the 32 questions require
computations)). Answers to the T/F
and short answer review questions have been posted under the "Chapter Notes
and Presentation Aids and Study Materials" link above. General exam
instructions are found on this web page (see below). I will put the TVM formulas on the exam (also see below).
Please bring your calculator, pencils, student ID, and a Scantron answer
sheet #882E (available at the campus bookstore).
- The Student Society of Real Estate is having an organizational meeting
on Tuesday, September 13th from noon to 12:50 PM in room 610 Business
Building. Please attend if you have an interest.
- Need help with the TI BA II plus calculator? There is a help
session on Thursday September 8th at 3 PM in Room 609.
Extra Materials:
Fannie Mae Summary (.pdf)
Fannie Mae: Introduction (.pdf)
Fannie Mae: Tools (.pdf)
Contract Case (.pdf)
Appraisal
Crossword Puzzle (.pdf)
Appraisal Crossword Puzzle Solution (.pdf)
Other Materials for Appraisal (.pdf)
Sales
Comparison Approach Problem Solution (.pdf)
Cost Approach Problems Solutions
(.pdf)
Sample Review Questions (.pdf)
Downloads:
Amortization Table
Investment Problem Spreadsheet
Relevant Articles:
Arlington Star Telegram (AST):
AST 11/17/02 Making homes affordable is
partnership leader's goal (.pdf)
AST 11/2/2002 Residents Say Plan Inadequate (.pdf)
AST 10/30/2002 Survey Ranks Dallas as 5th
Cheapest Meeting Site (.pdf)
AST 10/27/2002 O.K. Carter on Sprawl
(.pdf)
AST 10/18/2002 Area Ranks 10th in Urban Sprawl (.pdf)
AST 10/2002 Plan Would Require Land or Cash
for Parks (.pdf)
AST 9/2002 Bombs not lowering homes'
appraisals (.pdf)
AST 9/2002 Home Additions: Mortgage Rates may be low,
but... (.pdf)
AST 9/2002 Debt of Gratitude (.pdf)
Dallas Morning News (DMN):
DMN 1/2002 Designation of new historic
district gets criticism (.pdf)
Forbes (FBS):
FBS 11/22/02 Five Signs Your Home is Overpriced (.pdf)
FBS 11/15/2002 Profits Behind Bars (.pdf)
FBS 10/25/2002 Real Estate Tax Break--Or Bite?
1030 exchanges (.pdf)
FBS 10/2002 Billionaires Bet On Buildings (.pdf)
FBS 9/2002 The Profit--And Paid--Of Being
a Landlord (.pdf)
New York Times (NYT):
NYT
12/1/02 Recession Strikes Texas, but Not in Oil-Bust Way
NYT 11/4/2002 Earning More, but Struggling to Own a Home (.pdf)
Shorthorn (SH):
SH
11/20/2002 Apartment owner says no to offer (.pdf)
SH
11/8/2002 Campus Condemnation (.pdf)
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/
General Quiz 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 Quiz’ 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 by 10:50 AM.
- Do not remove test
booklets from classroom.
- Concentrate and do
your best. Good luck!
Time Value of Money Formulas:
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 )))]
Answers to Class 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
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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