FIN 467 Entire Course

FIN 467 Entire Course

Entire Course Link

https://plus.google.com/u/0/108200033792883877670/posts/dWT4sDYbQKM

 FIN/467 

REAL ESTATE INVESTMENT

 

The Latest Version A+ Study Guide

 

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FIN 467 Entire Course Link

https://uopcourses.com/category/fin-467/

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FIN 467 Week 1 Impact of the Real Estate Market
 

Use course web links, University Library, Internet, or other sources of literature and select a recent article that discusses the impact of the real estate market on households, businesses, or the overall economy.

Write a 350- to 700-word article review on the following:

 

 

 

Summarize the key points of the article.
 

 

Relate your personal experiences or observations that support or refute the key points of the article.
 

 

Format your submission consistent with APA guidelines.

Click the Assignment Files tab to submit as a Microsoft® Word document.

 

 
 

 

FIN 467 Week 2 Study Questions
 

Complete the following Study Questions:

 

 

 

Real Estate Principles: A Value Approach 

 

 

 

Chapter 10 Study Question 6, pg 270
 

 

Chapter 11 Study Question 9, pg 304
 

 

 
 

 

Format your submission consistent with APA guidelines

Click the Assignment Files tab to submit as a Microsoft® Word document.

 

 
 

 

FIN 467 Week 2 Selecting a Property
 

Your investment team has $500,000 available for a commercial real estate investment. Using the internet and/or local sources, select a commercial real estate property priced not more than $2.5 million. In making your selection, consider:  purchase price, terms, location and surroundings, physical condition, income, and expense, etc.

Compare your selected property to at least two similar properties in the same area.

Prepare a table with columns for your selected property and each comparable property, and rows for property information (i.e. purchase price, terms, etc.).

Produce a 350- to 525-word paper or 8- to 12-slide presentation using a modality of your choice. Include the following:

 

 

 

why your property was selected.
 

 

what information was most important in making your decision.
 

 

a copy of the team’s completed table.
 

 

Format your submission consistent with APA guidelines

Click the Assignment Files tab to submit as a Microsoft® Word document or Microsoft PowerPoint® presentation.

 

 
 

 

FIN 467 Week 3 Study Questions
 

Complete the following Study Questions:

 

 

 

Real Estate Principles: A Value Approach 

 

 

 

Chapter 14 Study Question 7 and 17, pg 404
 

 

 
 

 

 

 

 

Real Estate Finance and Investments: 

 

 

 

Chapter 13 Problem 3, part a, pg 457
 

 

 
 

 

Format your submission consistent with APA guidelines.

Click the Assignment Files tab to submit as a Microsoft® Word document.

 

 
 

 

FIN 467 Week 3 Real Estate Investor Financing
 

Keeping in mind the property acquired in Week 2:

Find three potential lenders (via Internet and/or local financial institutions).

Obtain information on the real estate investor loans, loan limits, structures, terms, rates, required ratios, and other conditions.

 

 

 

Prepare a table to summarize and compare your findings.  Use rows for each loan characteristic and a column for each lender.
 

 

Identify the lender that the team will use to finance its investment.
 

 

Determine your loan amount and calculate total principal and interest payments for the next 5 years.
 

 

Determine what your outstanding principal will be at the end of 5 years.
 

 

Produce a 350- to 525-word paper or 8- to 12-slide presentation using a modality of your choice. Include the following:

 

 

 

why the selected lender was chosen.
 

 

what loan terms were most important to the team.
 

 

a copy of the lender comparison table and your loan calculations.
 

 

Format your submission consistent with APA guidelines

Click the Assignment Files tab to submit as a Microsoft® Word document or Microsoft PowerPoint® presentation.

 

 
 

 

FIN 467 Week 4 Study Questions
 

Complete the following Study Questions:

 

 

 

Real Estate Principles: A Value Approach 

 

 

 

Chapter 18 Study Question 5, pg 498
 

 

Chapter 19 Study Question 12, pg 519
 

 

 
 

 

Format your submission consistent with APA guidelines

Click the Assignment Files tab to submit as a Microsoft® Word document.

 

 
 

 

FIN 467 Week 4 Net Operating Income
 

Keeping in mind the property acquired in Week 2:

Prepare a 5-year forecast of Net Operating Income in a format similar to Real Estate Finance and Investments, Exhibit 10-18, or Exhibit 11-16.  (McGraw-Hill Student Resources Excel Templates)

 

 

 

 

Document your all of assumptions.
 

 

Review Real Estate Finance and Investments, Concept Box 11.1 Abuses in Pro Forma Cash Flow Projections to be sure your assumptions are realistic.
 

 

Produce a 350- to 525-word paper or 8- to 12-slide presentation using a modality of your choice. Include the following:

 

 

 

the assumptions and the resulting Net Operating Income.
 

 

a copy of your 5-year forecast.
 

 

Format your submission consistent with APA guidelines

Click the Assignment Files tab to submit as a Microsoft® Word document or Microsoft PowerPoint® presentation.

 

 
 

 

FIN 467 Week 5 Discounted Cash Flow Analysis
 

Using your information from Weeks 3 and 4:

Estimate your 5-year before tax cash flow. See Real Estate Principles: A Value Approach, Exhibit 19-4.

Assume you will sell your property at the end of the Year 5.

Determine your terminal value using a going-out cap rate, then estimate your net sale proceeds. See Real Estate Principles: A Value Approach, Exhitbit 19-3.

Determine an appropriate discount rate and calculate the present value of your total cash flow. See Real Estate Principles: A Value Approach, Exhibit 19-6.

Calculate the Internal Rate of Return. Your purchase price less loan financing is your initial cash outlay in year 0.

Evaluate your investment:

 

 

 

Was your investment sucessful?
 

 

Why or why not?
 

 

What factors would you change to improve your investment?
 

 

Produce a 350- to 525-word paper or 8- to 12-slide presentation using a modality of your choice. Include the following:

 

 

 

your investment evaluation based upon your discounted cash flow analysis.
 

 

copies of all schedules and calculations.
 

 

Format your submission consistent with APA guidelines.

Click the Assignment Files tab to submit as a Microsoft® Word document or Microsoft® PowerPoint® presentation.

 

 
 

 

 
 

 

FIN 467 Week 5 Final Examination
 

Access the exam using the link provided.

Enter the Room Name provided by your faciliator.

Complete all questions and submit quiz via Socrative.

 

 

 

 

At the end of 8 years, your friend wants to have $50,000 saved for a down payment on a house. He expects to earn 8%—compounded monthly—on his investments over the next 8 years.  How much would your friend have to put in his investment account each month to reach his goal?
 

 

 

 

 

 

$188
 

 

$374
 

 

$392
 

 

$521
 

 

 

 

 

 

What document usually summarizes the sources, disbursements, charges and credits associated with a real estate closing?
 

 

 

(A)   The purchase contract

(B)   The deed of trust

(C)   The listing agreement

(D)   The settlement statement

 

 

 

 

An appraisal usually contains three approaches to valuation. Which of the following is NOT one of those approaches?
 

 

 

(A) The Market Approach

(B)   The Ratio Approach

(C) The Cost Approach

(D) The Income Approach

 

 

 

 

The subject of an appraisal has only two bedrooms, but one of the comparables used in the appraisal has three. If the adjustment for a third bedroom is $5,000, the adjustment would be:
 

 

 

(A)   A $5,000 increase to the comparable’s selling price

(B)   A $5,000 decrease to the comparable’s selling price

(C) A $5,000 increase to the subject’s selling price

(D) A $5,000 decrease to the subject’s selling price.

 

 

 

 

Which of the following is NOT a good method of title assurance?
 

 

 

(A) Seller provides a warranty in the deed

(B)   An attorney searches recorded documents

(C)   Title insurance is purchased

(D)   Seller provides a quitclaim deed

 

 

 

 

For which of the following reasons would a business prefer to own space rather than lease it?
 

 

 

 

 

 

The business demands specialized or unique facilities
 

 

Owning allows the business to develop skills in operating, maintaining, and repair real estate and the associated facilities
 

 

Owning reduces operating flexibility
 

 

The capital commitments with owning are lower than the capital commitments associated with leasing
 

 

All of the above are reasons a business would prefer to own space rather than lease it
 

 

 

 

 

 

A building owner charges net rent of $20 in the first year, $21 in the second year, and $22 in the third year. Using a 10 percent discount rate, what is the effective rent over the three years?
 

 

 

 

 

 

$20.00
 

 

$20.94
 

 

$21.00
 

 

$21.73
 

 

$22.00
 

 

 

 

 

 

Which of the following is FALSE regarding cap rates?
 

 

 

(A)   Excess supply tends to drive cap rates up

(B)   Rising interest rates generally tends to lower cap rates

(C)   Excess demand and falling interest rates results in lower cap rates

(D)   Excess demand leads to lower cap rates

 

 

 

 

Which of the following leads to rent premiums?
 

 

 

(A)   Apartments on periphery of site, higher floors with no elevators

(B)   Second or third levels in multi-level malls

(C)   Middle floors in office building

(D)   Apartments on higher floors with elevators

 

 

 

 

Which of the following is TRUE for a net lease?
 

 

 

(A)   All expenses are paid by the owner

(B)   All expenses are paid by the tenant

(C)   All expenses are paid by the lender

(D)   All expenses are paid by the investor

 

 

 

 

Which of the following tends to lower effective rents?
 

 

 

(A)   Percentage rent

(B)   Step up provisions

(C)   Concessions

(D)   CPI adjustment

 

 

 

 

Which of the following is NOT a requirement of REITs?
 

 

 

(A)   A REIT must have at least 100 stockholders

(B)   Not more than 50% of a REIT’s shares can be owned by five or fewer shareholders

(C)   At least 95% of a REIT’s income must be distributed to shareholders

(D)   All of the above are REIT requirements

 

 

 

 

An investor is considering renovating a building. The total cost of renovation is expected to be $100,000, of which 75% can be borrowed.  Given the after-tax cash flows to the equity investor as showed below, what is the incremental return from renovating?
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
1
2
3
4
5
ATCF after renovation
    9,200
   10,000
   12,000
  14,000
316,000
ATCF-no renovation
  10,000
   10,200
   10,440
  10,680
160,900
 

 

(A)   9.75%

(B)   10.14%

(C)   15.32%

(D)   12.67%

 

 

 

 

The adjusted basis can be defined as:
 

 

 

(A)   Original cost + capital improvements – accumulated depreciation

(B)   Sales price – mortgage balance – sales costs

(C)   Sales price – accumulated depreciation

(D)   Original cost – mortgage balance – sales costs

 

 

 

 

Which of the following statements regarding the sales comparison approach to appraisal is TRUE?
 

 

 

 

 

 

As a “rule of thumb” transactions involving foreclosures should be discounted by 10 percent
 

 

The comparable buildings’ characteristics are more important that the comparable properties’ location for performing the sales comparison
 

 

The comparable sales must involve transactions between unrelated individuals
 

 

The only factors important for comparable analysis are property size, building size, age of the building, and the condition of building
 

 

 

 

 
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