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 a couple days after
the exam.
Fall 2008 REAE 3325 Real Estate Fundamentals On-line Section
ATTENTION ALL REAE 3325.06 ONLINE STUDENTS AND PROSPECTIVE STUDENTS!
PLEASE READ THE FOLLOW BEFORE REGISTERING FOR THIS SECTION:
Orientation Assignment (Please do this before registering for the class or
ASAP.)
*Read and review this website.
*Visit the student blog site
http://reaeonline.blogspot.com/
*Down load, print-out, and read the
syllabus carefully.
*View
Orientation video clip (1 hour 14 minutes).
*Purchase textbook, TVM tutorial, and financial calculator (you need to learn
how to use your own financial calculator).
*Record the four exam dates in your calendar (also include the TVM deadline
date).
Instructor Contact Information
Professor: Dr. J. Andrew Hansz, Ph.D., CFA
Office: 631 Business Building
Office Hours: Tuesday, Thursday from 2 to 4 PM and by appointment (except for days with Undergraduate Assembly meetings!)
E-mail: reae3325online@gmail.com (Please use this e-mail address!)
TVM Completion List (will be updated during the semester)
REAE 3325 Fall 2008 Students:
The TVM tutor this semester is Mr. Yongho Seo. His office is 404 Business Building and his phone number is (817) 272-3835. The tutoring hours for this semester are as follows:
Monday 2:30-5 PM
Tuesday 10:00-12:30 PM
Wednesday 4:30-7 PM
Thursday 2:30-5 PM
Please use this service! The TVM proceeds (fees) goes to providing this help to
you.
If you cannot find the TVM tutor during these listed hours, stop by the
Department Office (room 434) or call (817) 272-3705.
Updated 10/19/2008. Click here for TVM Tutorial completion list. If you completed the TVM you will have a 'Y' next to your name, otherwise 'N.' You must complete the TVM Tutorial, otherwise you will automatically receive an 'F' for the course. This is a Department requirement for all REAE 3325 students.
Weekly Assignments (I encourage you to work ahead. At a minimum, you should keep-up with the schedule below.)
Week 1 (August 25, 2008):
*Check-in and send your current e-mail address to Dr. Hansz at
reae3325online@gmail.com.
*Read the "General Information" section below.
*Read chapters 1 and 13 and view video clips for these chapters (as always,
complete all
end of chapter problems and exercises).
*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 (September 1, 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
and exercises).
*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) or send by mail.
*Practice with your calculator (the time value of money menu).
-Make sure 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 (September 8, 2008): TVM Boot Camp
*Visit class blog.
*Record the four exam dates with the exam location
in your calendar.
*Turn-in TVM prior completion form or complete the TVM Tutorial (the sooner
the better!).
*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 reae3325online@gmail.com
if you like (not required). Include a picture of yourself and a picture that is
important or of interest to you.
I will include these photos is the slide-show above. It is nice to get to
know some faces, even thought this is an on-line class.
September 10th Census Date
Week 4 (September 15, 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 in your schedule.
*Exam 1 on Saturday, September 20th at 10 AM in room 147 Business Building. 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).
Exam 1 will be 50 or fewer multiple choice style questions.
Week 5 (September 22, 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.
*Individual exam scores will be posted on WebCT.
Week 6 (September 29, 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.
Week 7 (October 6, 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.
Week 8 (October 13, 2008): Exam 2 Week
*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, October 18th 10 AM in room 147 Business Building. 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 (October 20, 2008):
*Review Exam 2. Click on this link to download a WMV file.
*Read Chapters
8 and 9 view video/audio
clips, do practice problems etc. (the usual routine for each chapter).
Week 10 (October 27, 2008):
*Read Chapters 10 and 19 view video/audio
clips, do practice problems etc. (the usual routine for each chapter).
October 31st Last Day to Drop a Class
Week 11 (November 3, 2008):
*Read Chapter 11 view video/audio
clips, do practice problems etc. (the usual routine for each chapter).
Blog Post Bonus Deadline is Saturday, November 8th
Week 12 (November 10, 2008):
*Chapter 11 (continued, this is a big chapter) and 12 view video/audio
clips, do practice problems etc. (the usual routine for each chapter).
*REMINDER: Third exam is Saturday, November 22nd at 10 AM. This is also
the deadline for the TVM tutorial.
*Please read all student blog posts this week. I will ask your help and
options regarding their quality and usefulness to the course.
Week 13 (November 17, 2008): Exam 3 Week and TVM
Tutorial Deadline
*Chapter 17
and 18 view video/audio clips, do practice problems etc. (the usual routine for each
chapter).
*EXAM 3 Saturday, November 22nd from 10:00 AM to 11:30 AM in Room 147. 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 Tutorial Deadline is also Saturday, November 22nd. Please turn-in by
11:30 AM. You must complete this or I have to give you an 'F' for the
course.
Week 14 (November 24, 2008): Thanksgiving Break Week
*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.
Week 15 (December 1, 2008): Final Exam Week and/or
Investment Problem Bonus
*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 (and Investment Problem Bonus option) is schedule for Saturday,
December 6th at 10 AM in room 147. Please
bring your photo ID, pencils, Scan-tron form, and calculator.
The final is
cumulative but emphasis will be placed on Chapter 16. It is not mandatory
if you do not want or need to improve your three exam scores.
(It is mandatory if you missed one of the three prior exams.)
Important Dates (Please put these dates in your schedule during the first
week of the semester! No make-up exams.)
Exam 1 (Saturday,
September 20th from
10 AM to 11:00 AM Room 147 – Do not arrive late!)*
Exam 2 (Saturday,
October 18th from 10 AM to 11:00 AM
Room 147 – Do
not arrive late!)*
Blog Post Bonus Deadline Saturday, November 8th
Exam 3 (Saturday,
November 22nd from 10 AM to 11:30 AM
Room 147 – Do
not arrive late!)*
TVM Tutorial Deadline
Saturday, November 22nd (Must complete or you will receive a 'F' in course.)
Cumulative Final Exam: Saturday,
December 6th from 10:00
AM to 12:30 PM*
*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* (1 hour 14 minutes)
*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/online/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://reaeonline.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://reaeonline.blogspot.com/ (Student Blog)
https://webct.uta.edu/ (to report grades only)
General Information (Please read very carefully before registering for this course!)
Exam 1 (Saturday,
September 20th from
10 AM to 11:00 AM Room 147 – Do not arrive late!)*
Exam 2 (Saturday,
October 18th from 10 AM to 11:00 AM
Room 147 – Do
not arrive late!)*
Blog Post Bonus Deadline Saturday, November 8th
Exam 3 (Saturday,
November 22nd from 10 AM to 11:30 AM
Room 147 – Do
not arrive late!)*
TVM Tutorial Deadline
Saturday, November 22nd (Must complete or you will receive a 'F' in course.)
Cumulative Final Exam: Saturday,
December 6th from 10:00
AM to 12:30 PM*
*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.
Other Downloads
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:
Strategies for Success
For each chapter
•
Read the assigned text chapter and view any video clips posted on the class website ashomework.
•
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) andreview 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, andquiz 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