REE 3043 0002 Sp 2020 Course Outline (Syllabus)-3 PDF

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Outline REE3043s0002Sp2020

REE 3043 s0002 Fundamentals of Real Estate T, TH, 1:30pm – 2:45pm Room 116 HPA1

Spring, 2020

Date 1/7 1/9

1

Dr. Curcio

Assigned Meeting Class Topic/Activity Readings Homework 1 Stocktrak Assignment Webcourses@UCF All Test 2 Nature of Real Estate and Real Estate markets L/A Ch. 1 Problms. Etc. Online Academic Activity Quiz, due by 5:00pm Friday, Jan. 10 – See details on page 2

1/14 1/16

3 4

Legal Foundations of Value Conveying Real Property Interests

L/A Ch. 2 L/A Ch. 3

All Test Problms.Etc.

1/21 1/23

5 6

Conveying Real Property Interests Government Controls and Real Estate Markets

L/A Ch. 3 L/A Ch. 4

All Test Problms.Etc.

1/28

7

Review: (Chptrs.1-4), Market Determinants of Value L/A Ch. 5 Stocktrak Part #1 Due Market Determinants of Value L/A Ch. 5 Quiz # 1 (Chptrs.1-4) (Testing Lab, Room 104 BA2)

All Test Problms.Etc.

Review: (Chptrs.1-5), Forecasting Ownership Value: Market Research L/A Ch. 6 “ “ “ “ Exam # 1 (Chptrs.1-5) (Testing Lab, Room 104 BA2)

All Test Problms.Etc. “

1/30 8 1/28 – 1/31 2/4

9

2/6 10 2/4 - 2/7 2/11

11

2/13

12

2/18

13

2/20 14 2/18 – 2/21 2/25

15

2/27 16 2/25– 2/28 3/3 17 3/5 18 3/9 – 3/14

Valuation, Sales Comparison and Cost Approaches Valuation Using the Income Approach

L/A Ch. 7 L/A Ch. 8

Review: (Chptrs.6-8) Real Estate Finance: Laws & Contracts L/A Ch. 9 " “ “ Quiz # 2 (Chptrs.6-8) (Testing Lab, Room 104 BA2)

“

All Test Problms.Etc. All Test Problms.Etc. “

Review: (Chaptrs. 6-9) All Test Res. Mortgage Types &Borrower Decisions L/A Ch. 10 Problms.Etc. Sources of Funds for Residential Mortgages L/A Ch. 11 “ Exam # 2 (Chptrs.6-9) (Testing Lab, Room 104 BA2) Real Estate Brokerage & Listings L/A Ch. 12 All Test Contracts for Sale and Closing L/A Ch. 13 Problms.Etc.

NO CLASS - SPRING BREAK

3/17

19

3/19

20

3/24 21 3/26 22 3/24 – 3/27

Effects of Time and Risk on Value Review: (Chptrs.10-13) Mortgage Calculations - (Rev. Chptrs.10-15)

L/A Ch. 14

All Test Problms.Etc. L/A Ch. 15 “

Commercial Mortgage Types and Decisions L/A Ch. 16 All Test Sources of Commercial Debt and Equity Capital L/A Ch. 17 Problms.Etc. Quiz # 3 (Chptrs.10-13) (Testing Lab Room 104 BA2)

2

Outline REE3043s0002Sp2020

Date 3/31

Meeting 23

4 /2

24

3/31 – 4/3 4/7

25

4/9

26

4/14 – 4/17

Class Topic/Activity Readings Homework Investment Decisions: Ratios L/A Ch. 18 All Test Stocktrak Part #2 Due Problms.Etc Investment Decisions NPV and IRR L/A Ch. 19 “ Extra Credit Papers Due Exam # 3 (Chptrs.10-15) (Testing Lab, Room 104 BA2) Income Taxation and Value Review: (Chptrs. 16-18)

L/A Ch. 20

Development: Dynamics of Creating Value L/A Ch. 23 (Review for Final Exam: Chptrs.16-20 and 23) Quiz # 4 (Chptrs.16-18) (Testing Lab, Room 104 BA2)

“ All Test Problms.Etc

Final Exam (Exam # 4) – To Be Announced (TBA) (Chptrs.16-20, and 23) (Testing Lab, Rm 104 BA2) ******************** Textbook: Ling, David C. and Archer, Wayne R. Real Estate Principles, A Value Approach, 5th Edition. McGraw-Hill/Irwin, 2018. ISBN:978-0-07-783636-8 (This is the only Textbook required for this course.) ******************** Grading Basis: Individual Performance: Academic Activity Quiz+ 0% 4 Course Quizzes @ 5% each 20% 4 Exams @ 16% each 64% Stock-Trak project: 2 Parts @ 8% each 16% Total =100% ******************** OFFICE: Room 415 BA1 OFFICE HOURS: Tuesdays: 4:45pm - 6:00pm

Thursdays: 11:30pm – 1:15pm Telephone:

Other HOURS BY APPOINTMENT 407-823-0905 (Office)

E-mail:

[email protected] (Office)

+

Important Note: In order to document that you began this course, please complete the Online Academic Activity Quiz by 5:00pm Friday, Jan. 10, 2020 of the first week of classes. Procedures: Log in to Webcourses@UCF, from anywhere, click on Academic Activity Quiz, complete the Quiz, and submit it. The Quiz is for 100 points but counts 0 towards your grade. Failure to do so will result in a delay in the disbursement of your financial aid. The Quiz will be available on line until 5:00pm, Monday, April 20, 2020.

Outline REE3043s0002Sp2020

3

STOCK-TRAK ASSIGNMENT - Each student in the class must register for a Stock-Trak account. Go to: STOCK TRAK ACCOUNTS: REGISTRATION PROCEDURES below. The account will provide you with $1,000,000 of hypothetical investment funds. These funds are to be invested in the following manner: $300,000 is to be invested in Real Estate-related assets from the following list:  Real Estate Investment Trusts (REITS) (Choose at least 5; Go to pages 7,8 and : www.reit.com/)  Real Estate Exchange Traded Funds (ETF’s) (Choose at least 3); Go to pages 7,8 and : www.reit.com/)  Real Estate Leveraged Exchange Traded Funds (LETFs) (Choose at least 2); Go to pages 7,8 and : www.reit.com/) (See Nareit)  Real Estate Mutual Funds (Choose at least 2). Go to pages 7,8 and : www.reit.com/) (See Nareit)  Choose at least 5 Real Estate-related common stocks,1from each of the following categories: Home-Building Company Stocks Home Improvement Company Stocks Building Materials Company Stocks Hotel and Hotel/Casino Stocks Savings Institutions/Commercial Banks; Other Real Estate Related Companies $300,000 is to be invested in Non-Real Estate-related Stocks or Equity ETFs. Choose at least 5 Non-Real Estate related common stocks or equity ETFs (e.g.Amazon.com, AMZN; Hewlett Packard, HPQ; Coca Cola, KO; Kohls, KSS; Google, GOOG; Pfizer, PFE; YUM Brands, YUM; Apple, APPL; McDonalds, MCD; Netflix, NFLX; Pepsi, PEP; Exxon-Mobile, XOM; Merck, MRK; ETFs: (S&P 500) SPY, (NASDAQ 100) QQQ, (Dow-Jones Industrials) DIA. The balance, $400,000, may be invested in any other real estate or non-real estate related assets.

STOCK TRAK ACCOUNTS: REGISTRATION PROCEDURES To register for your Stocktrak Account use (copy and paste) the entire following link: ht t ps: / / www. st ockt r ak. com: 443/ member s/ r egi st er st udent ?cl assName=UCFREE3043s0002Sp2020

After registering, follow all directions. The price per student account = $15.95, and will have to be paid online through a credit card. This is for the Gold Service level (normally $31.95 per account), which permits 400 trades over the period beginning the week of January 6, 2020 and ending May 1, 2020. Stocktrak has informed me that since this price represents a $16.00 discount from the normal price, no further discounts will be permitted. Remember that your Class Code is UCF-REE3043s0002-Sp2020 at StockTrak.com. Should you have any questions, please call StockTrak’s Support Service Department at 1-514871-2222 Ext. 247 or call Stocktrak's Customer service 1 800 786 8725 for help. The STOCK-TRAK ASSIGNMENT, using your official, not your Practice account, involves two parts: Part #1: Submit a typed (hard copy) report of your initial investment selections (in required Table Format) by Tuesday, Jan. 28, 2020(beginning of class). Use the required TABLE FORMAT #1, with detailed instructions for this part of the assignment, which is provided on Webcourses@UCF , content module. Briefly summarize, separately, (1) your Real Estate-related investments and (2) your non-Real Estate related, investment selections, with a short explanation of the basis for your selections. (Intuitive explanations are acceptable.) Note: NO Electronic copies of this or any other assignment will be accepted for credit. Part#2: Submit a follow-up typed performance report (in the required Table Format) of your investment selections by Tuesday, March 31, 2020(beginning of class). Use the required Table Format #2, with detailed instructions for this part of the assignment, which is provided on Webcourses@UCF , content module. Describe and explain the individual and overall performances, gains (losses) in US dollars, of your Real Estate-related investments and your non-Real Estate-related investments. Calculate your Rate of Return on Investment, assuming a beginning amount of $1,000,000. Note: NO Electronic copies of this or any other assignment will be accepted for credit. Failure to follow all of the above requirements and detailed instructions will result in a substantial deduction or zero credit. Be sure to print your name on your submission to receive credit .

Outline REE3043s0002Sp2020

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Course Description and Objectives: REE 3043 is a basic, Principles of Real Estate course, which focuses on real estate decision-making with respect to investment, market analysis, sales and brokerage, appraisal, development and mortgage finance. The primary goals of the class are to impart knowledge and understanding for:  Making effective and efficient business and investment decisions in real estate; and  Developing an awareness of the activities, roles and participants in the overall, real estate industry. The perspective of valuation is employed as the primary, unifying theme in the conveyance of the theories, knowledge, skills and procedures for making real estate decisions. ******************** Make-Up Exam Policy: All Quizzes and Exams will be administered in the Testing Lab, Room 104 BA2, over an extended time period. Hence, there will be NO make-up Quizzes or Exams. ******************** Homework Assignments and Outside Readings: Students are assigned readings, supplementary to the textbook, and are also assigned to prepare solutions to all of the End-of-Chapter: Test Problems, Study Questions and Concept Checks. These homework assignments will not be collected. However, preparing these readings and assignments, as well as attending class and taking careful notes will enhance preparedness for all Quizzes and Exams. All Outside Readings and Solutions to the End-of-Chapter Test Problems and Study Questions will be provided on Webcourses@UCF, content module. Solutions to the Concept Checks are included in the textbook. ******************** Extra-Credit Opportunities: (1): Extra Credit can be earned by submitting a report on short, current (published within the current semester), Real Estate articles appearing in periodicals such as The Wall Street Journal, Barron's, The New York Times, Commercial Property News, Florida Real Estate Journal, National Real Estate Investor, NAR Insight and similar quality publications. The report must: have a cover page stating the Title and source of the article, your name, course and section number; plus a minimum of 2, typed (font size 12 or less, 1 inch margins, double-spaced), pages in length and include a detailed summary of the article and a separately identified commentary including yours or other authors’ opinions of the topic and the reporting. You must also attach the article to your extra credit submission. (Note: You may not use the same extra credit article for another course.) You can earn up to a maximum of 2 full overall grade points per report. (Note: Articles assigned as readings for this class, are not eligible for extra credit.) The overall maximum for extra-credit is 3 reports, which at full credit, is 6 full overall grade points. All extra-credit reports must be submitted in hardcopy (no electronic submissions will be accepted for credit) by Thursday, April 2, 2020 (beginning of class). (Note: Extra Credit for Extra Credit Reports will be granted only for students who have completed the required Stocktrak project.) Failure to follow all of the above rules will result in a substantial reduction or zero credit. ******************** IMPORTANT: The Quizzes and Exams can be expected to draw on all lectures and assigned material. Lectures will emphasize basic themes and an understanding of key concepts. However, with the volume of material the course attempts to deliver, lectures will NOT give in-depth coverage to everything that is assigned. GRADING SCALE: A - 90-100 B - 80-89 C - 70-79 D - 60- 69 F - < 60

There is NO plus or minus grading. There is NO rounding up of any kind.

Outline REE3043s0002Sp2020

Spring, 2020

5

REE 3043 s0002 Fundamentals of Real Estate T, TH 1:30pm – 2:45pm Room 116 HPA1

Dr. Curcio

QUIZ AND EXAM SCHEDULE in the TESTING LAB Room 104 BA 2 Online Academic Activity Quiz, due by 5:00pm Friday, Jan. 10, 2020. (Not given in the Testing lab.) Procedures: Log in to Webcourses@UCF, from anywhere, click on Academic Activity Quiz, complete the Quiz, and submit it. The Quiz is for 100 points but counts 0 towards your grade. Failure to do so will result in a delay in the disbursement of your financial aid. The Quiz will be available on line until 5:00pm, Mon. Apr. 20, 2020. Quiz #1: Begins 7:00am, Tuesday, Jan. 28, 2020 through (all hours that the Testing Lab is open) to 9:30pm, Friday, Jan. 31, 2020. Exam #1: Begins 7:00am, Tuesday, February 4, 2020 through (all hours that the Testing Lab is open) to 9:30pm, Friday, February 7, 2020. Quiz #2: Begins 7:00am, Tuesday, February 18, 2020 through (all hours that the Testing Lab is open) to 9:30pm, Friday, February 21, 2020. Exam #2: Begins 7:00am, Tuesday, February 25, 2020 through (all hours that the Testing Lab is open) to 9:30pm, Friday, February 28, 2020. Quiz #3: Begins 7:00am, Tuesday, March 24, 2020 through (all hours that the Testing Lab is open) to 9:30pm, Friday, March 27, 2020. Exam #3: Begins 7:00am, Tuesday, March 31, 2020 through (all hours that the Testing Lab is open) to 9:30pm, Friday, April 3, 2020. Quiz #4: Begins 7:00am, Tuesday, April 14, 2020 through (all hours that the Testing Lab is open) to 9:30pm, Friday, April 17, 2019. Final Exam (Exam #4) To Be Announced (TBA).

Testing Lab (Room 104 BA 2 ) http://web.bus.ucf.edu/testinglab/ Phone: 407 823 5158 Normal Operating Hours: Monday through Thursday -7:00am – 12:00midnight Friday –7:00am – 9:30pm Saturday- 9:30am – 8:30pm Sunday – closed Also, go to http://www.bus.ucf.edu/testinglab/ for Testing Lab policies, current exam schedules and general information. Important Notes: You will be provided with scratch paper by the testing lab but must bring your own personal standard or financial calculator. You will need a financial calculator for the second half of the course. I recommend the HP 10BII or HP 10BII+. NoNot esorbooksofanyki ndar eper mi t t ed. You must arrive in the Testing Lab at least one hour and 30 minutes before the Testing Lab’s closing time for Quizzes, and, at least 2 hours before the Testing Lab’s closing times for Exams, in order to insure that you will have the full time allotted for these Quizzes and Exams. Also, See the Following Important Administrative Notes regarding the use of the Testing Lab: Remember:    

No books, no bags, no electronic devices of any kind except for a standard or financial calculator. No helmets or skateboards. Students must provide a valid UCF student ID to be admitted into the Testing Lab. Lockers are available for $.25 and $.50 in room 105 (next to the Testing Lab)

For Updated Policies and Procedures go to http://www.bus.ucf.edu/testinglab/ : COBA Pass is a way of scheduling a time for your exam to bypass a line if there is one. During finals and other busy times during the semester it will help to have one scheduled for each exam. You don't need a COBA Pass to take an exam. However, COBA Pass holders will be able to skip the line (if there is one) to enter the lab at their scheduled time slot. For a COBA Pass go to: http://www.bus.ucf.edu/testingcenter/?page=1763

NOTE: Students must provide a VALID UCF student ID to be admitted into the Testing Lab.

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Dr. Richard J. Curcio

Associate Lecturer in Financial Markets, Real Estate at UCF. Current Research – Investment Risk Management using LIETFs, Options and Futures e-mail: [email protected]

Dr. Richard J. Curcio received his Bachelor’s Degree in Science and a Ph.D. in Finance from The Pennsylvania State University.

Dr. Curcio is Professor Emeritus at Kent State University and currently holds the position of Lecturer in the Department of Finance and Dr. P. Phillips School of Real Estate at the University of Central Florida in Orlando. Prior to coming to UCF, he held the rank of Professor of Finance at Kent State University where he also served as Chairman of KSU’s Department of Finance. Before moving to Kent State, Dr. Curcio was an Administrator in the Mathematics Department of The Pennsylvania State University and a research chemist with the Beryllium Corporation (subsequently, Brush-Wellman, Inc.). His primary teaching and research interests are in the fields of Financial Management, Investments, Real Estate, Financial Markets, Entrepreneurship, International Finance and Derivatives. He has published and presented numerous articles on such topics as capital budgeting, cost of capital, financial analysis of banks, real estate valuation and portfolio selection, investment risk management, global mixed-asset diversification and investment arbitrage. His research has been published in the Journal of Portfolio Management, the Journal of Financial Research, Review of Futures Markets, Decision Sciences, Real Estate Economics, Journal of Real Estate Research, Global Finance Journal, Financial Services Review, The Multinational Business Review, the Journal of Investing, Applied Financial Economics, Journal of Index Investing and Real Estate Finance. Dr. Curcio has organized and conducted executive training sessions for: The Goodyear Tire and Rubber Co., Goodyear Aerospace Corp. (subsequently, Lockheed-Martin), Stouffer’s Foods, Lubrizol, Salem Community Hospital and FirstEnergy Corp.

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Real Estate Investment Information  Real Estate Investment Trusts (REITS) – A corporation or trust that uses the pooled capital of many investors to purchase and manage income property (equity REIT) and/or mortgage loans (mortgage REIT), or hybrid REITS which include both income property and mortgage loans. Types of REITs – Equity REITs: Apartment, Office, Retail, Shopping Centers, Strip Malls, Storage Buildings, Nursing Homes, HealthCare Properties, Golf Courses, Hotels and Hotel/Casinos, Data Centers, Cell Towers, Home Builders: Mortgage REITs (mREITs): Residential; Commercial. Websites with useful information on REITs: https://www.reit.com/ (See Nareit) Exchange Traded REITs: www.reit.com (See Nareit) [Sample Equity REITS, Simon Property Group (SPG); W.P. Carey (WPC); Health Care (HCN); Avalon Bay (AVB); Ventas (VTR); Equity Residential (EQR); Public Storage (PSA); American Tower Corp (AMT); Equinix Inc. (EQIX); Prologis Inc. (PLD); Crown Castle International Corp (CCI); Sample mREITs: Blackstone Mortgage (BXMT); Ladder (LADR); Arbor Realty Trust (ABR); KKR Real Estate (KREF)

 Real Estate Exchange Traded Funds (ETFs) Sample Real Estate ETFs

Ticker:

iShares Dow Jones U.S. Real Estate Index Fund

IYR

streetTRACKS Wilshire REIT Index Fund

RWR

Vanguard REIT VIPERS

VNQ

iShares FTSE NAREIT Mortg.REITIn Fd(ETF)

REM

iShares Cohen & Steers Realty Majors Index Fund The Hoya Capital Housing ETF

ICF HOMZ

 Real Estate Leveraged Exchange Traded Funds (LETFs) Sample LETFs Ticker Direxion Daily MSCI Real Estate Bull (long) 3X Shrs. DRN Direxion Daily MSCI Real Estate Bear (inverse) 3X Shrs. DRV ProShares Ultra Real Estate Bull (long) 2X Shares URE ProShares Ultra Short Real Estate Bear (inverse) 2X...