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Courses #1&2
Real State Fundamentals
The most important financial decision most individuals make is the purchase of their home. Especially for first time
home buyers, the process is complex, mystifying and scary. To address those issues, the focus the first two-thirds of the
semester was on the house buying process. An actual case involving a house purchase was illustrated in class covering the
entire process from the listing agreement through a purchase contract, financing, valuation, transfer of ownership and the
closing. The case is built around the various real estate forms that are used throughout the process and the content of the
forms ties in with the material in the text. Rather than just studying the text chapter by chapter, the case helped to illustrate
the importance of the material in the text. The case and various real estate forms that were discussed in class were online.
There were no assignments or papers related to the course that are to be turned in.
The last one-third of the semester was to illustrate the analysis of a small investment property, using a current listing
of a duplex that is for sale. The various aspects of investment analysis beginning with market analysis and proceeding through
financing, taxes, cash flows and rates of return, etc. were discussed from the perspective of a potential investor. Once
again, rather than merely proceeding through the chapters, topics were discussed in order as they relate to the investment
analysis process.
Since the course is set up around the cases, reading assignments did not follow the organization of the text but rather
what was appropriate at each stage in the process. The material in the course was tested with three exams and a final exam.
Students had to take at least three exams to pass the course. If all four exams are taken, the lowest test score was to
be dropped in determining your course grade.
At the end of the semester, I was able to be familiar with the house buying process and understand the tools needed to
successfully invest in real estate.
I have learned many concepts from this course including:
The Rule of 72
Time Value of Money
leverage
I'll use Supply and Demand concept in economics and combine it with Time Value of Money and Rule of 72, which I learned
from this course, to analyze the real-state market behavior as a function of time, supply, and demand. Therefore, be able
to predict future housing market.
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