REAE 3325 Real Estate Fundamentals Online Blog

Final Exam and Final Grades Finally Posted to WebCT

2009-07-29T21:34:00.001-05:00

The final exam grades and final course grades have been posted to WebCT. Please note that all Blog Post and Investment Problem extra credit have been included in final course grades.

Exam 3 Grades

2009-07-19T21:21:00.002-05:00

There was a one question curve built into your Exam 3 grade (as reported on WebCT). Your grade was calculated by taking the number you had correct plus 1 divided by 44 (the total number of questions).

If I said a two question curve on the Exam 3 review clip, I apologize. I might have rushed a bit to get the Exam 3 review up and ready after the exam.

Exam 3 Scores Posted

2009-07-19T17:35:00.001-05:00

Exam 3 grades have been posted to WebCT.

WEEK 8: July 20th with the FINAL EXAM on Saturday, July 25th On-campus

2009-07-18T17:48:00.000-05:00

*Review Exam 3 on-line.
*Read Chapters 16 (the final is comprehensive but I will give extra emphasis to Ch. 16), view Investment Problem video/audio clips, do practice problems etc..
*Read Chapter 20 (no video/audio clips for this chapter) and do practice problems etc. (the usual routine).
*Continue to Review Investment Problem (IP) clips. This is an optional bonus problem that will be part of the final exam.
*FINAL EXAM (and Investment Problem Bonus option) is Saturday, July 25th at 10 AM to 12:30 PM 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.
*The final exam 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.
*You may also take the Investment Problem Exam without taking the final exam.
*Please note that for the IP Exam, you will receive the IP assumption only and you will have to work through the problem without any template or notes.

Exam 3 Review

2009-07-18T13:07:00.001-05:00

The review for exam 3 has been posted. Please visit http://www.uta.edu/faculty/hansz/3325/summer/Exam3Sum09.wmv.

I will post scores to WebCT by Monday.

Blog Bonus Submission: Omar Gutierrez

2009-07-17T11:20:00.002-05:00

Commercial Real Estate Feeling the Economic Strain
By Omar Gutierrez

The big real estate news of the year is around the declining home market. But has anyone paid attention to all of the office buildings around town with “Office Space Available.”

The commercial real estate market is struggling just as much as the residential market. Many businesses are unwilling to make long term lease commitments for their office space because they are unsure of their future. Those companies can’t really tell how much growth to expect in the next coming quarters, so committing to a standard minimum lease of 5 years may not be a good idea. They may not need all the say they leased, or it may be too small of a space. Real estate brokers and landlords are being forced to adapt to this changing demands of their clients.

The result is many brokers are allowing shorter term leases. In the case of a digital marketing firm Razor-360, they recently rented offices in Addison, TX for only 16 months. Typically, brokers and landlords turned down these types of leases. But in today’s economy, then need to do anything they can to retain tenants and generate income. An empty office space does not generate any revenue, so the tenants are beginning to have more power in the marketplace.

But companies who are confident in their futures are still willing to make those long-term leases. Paul Whitman, who heads Jones Lang LaSalle’s Dallas office said, “I’m working on a transaction right now where we are going to do a 15-year term. They are a company that has a solid feeling about who they are, what they’re going to do and how much space they need.”

Overall, the leasing market is down more than half-million square feet so far this year in the Dallas area. Everyone is trying to do what they can to survive this current economic climate. For those business tenants willing to do a longer term, landlords are wheeling and dealing with rental rates to ensure they have their continued business. But even brokers and landlords are advising tenants to sign shorter term leases if needed. Whitman said, “Would the landlord rather have a longer term? Of course. But they would rather have one year than zero.”

Works Cited

Brown, Steve. “Uncertain about future, companies signing shorter leases.” Dallas Morning News. 26 June 2009. http://www.dallasnews.com/sharedcontent/dws/bus/industries/commrealestate/stories/062609dnbusshorterterms.3bb000e.html

Exam 3 Announcement

2009-07-17T10:22:00.001-05:00

Exam 3 tomorrow at 10 AM!

Bonus Blog Post by Amanda Wells

2009-07-16T22:49:00.002-05:00

How is Commercial Real Estate in North Texas Holding Up?

It is no secret that the United States has been in a lot of trouble lately when it comes to the real estate market. Residential foreclosures can be spotted in almost any neighborhood and commercial building vacancies are not hard to spot either. Most have probably heard by now that Texas has taken less of a hit in the real estate market than most areas in the US, but a majority of the news is about residential real estate. This led me to examine a less popularized side of the real estate market in today's economy- commercial real estate. This post will examine how commercial real estate in the DFW area is holding up during this economic downturn, both relative to past years in DFW and relative to other areas of the country.

The North Texas commercial real estate market has no doubt seen some decline in the last year. The retail market alone is expected to reach a 13.2% vacancy rate by the end of 2009. This is a rise of 1.8% from last year's rates in DFW, and these numbers are only for commercial retail space (fwbusinesspress.com). Although "retail construction is still chugging along" (viprealtyinfo.com), there have been some declines in the construction of new commercial space. While 6.4 million square feet are expected to be built this year, that is still a decline of 2.6% from last year (fwbusinesspress.com). All of this is, with no doubt, related to recent job losses in the area, and around the US. Not only are companies reducing their payrolls and in need of less commercial building space, but the loss of jobs causes families to spend less, which fuels the cycle of job-cuts and recession.

Still, the DFW area is strong for many reasons. "The DFW market ranks No. 9 among the top 10 investment markets", states one article from Star-Telegram. This is partly related to the fact that North Texas is the home to several large companies, including ExxonMobil, DFW Airport, and AT&T (star-telegram.com). The Barnett Shale and the new Cowboys stadium have also provided many jobs in the area, although these will eventually phase out.

"The report (ranking DFW as No.9) does not paint a pretty picture for the nation's commercial real estate markets. Ongoing drops in property values, more foreclosure and delinquencies, and the limping economy will continue to crimp property cash flows, according to the report" (star-telegram.com). But DFW is expected to thrive and job growth, as well as relatively good commercial occupancy rates, will keep North Texas healthier than the rest of the nation, even if some things have slowed down. Local commercial investors are starting to use some of their saved-up cash to invest in North Texas again, and out-of-state investments are starting to slow, which is bringing the area back to a more normal position (fwbusinesspress.com).

The overall picture that is painted here is that DFW is clearly not recession-proof, as commercial building has slowed from previous years, property values have declined, and vacancy rates have risen. But for many reasons, North Texas is thriving far better than the rest of the United States and businesses should do well. Analysts tag DFW as one of the first markets that will "surge ahead when the economy begins to improve. The DFW market is expected to see signs of growth as early as 2010" (viprealtyinfo.com). All of this is very hopeful for the commercial real estate market of North Texas, as well as the rest of the real estate market in the DFW area.

-Amanda Wells

Sources:

Fort Worth Business Press: "Recession Worries Impacting North Texas Retail Market"

Star-Telegram: "DFW Should Weather Commercial Real Estate Downturn"

VIP Realty: "Dallas Commercial Real Estate"

VIP Realty: "The State of the North Texas Commercial Real Estate Market: What's Next?"

Summer 2009 Drop Date

2009-07-14T17:54:00.000-05:00

Last Day to Drop Thursday, July 16, 2009.

Bonus Blog Submission - Kellie A. Brooks

2009-07-11T19:13:00.001-05:00

House Flippers, Once Booming, Now Hurting As Well

In today’s economy, every aspect of the real estate industry is struggling. Eric Holbert, is no exception. His house flipping company has taken a dramatic hit in this recession.

“The economy has affected my business tremendously. It is very slow and unpredictable”, Holbert said.

House flipping is purchasing a house or property then selling it for a profit. Most of the properties require some type of remodeling before it can be put back onto the market for resell.

In today’s economy, few people are buying homes let alone refurbishing and reselling them. Holbert’s company, Holbert Custom Services, is one of many that are struggling to stay afloat. In his business, he sells homes to low income families, becoming their landlord. The government pays a portion of the rent and the families pay the balance. These families, already struggling before the recession, are hurting even more.

“My tenants are having trouble keeping their jobs, and they are having trouble paying rent at the same time.” He said.

So how is his company surviving? He has cutback on purchasing additional homes, opted for cheaper fixtures, and he budgeted his personal money in case his tenants aren’t able to pay their part of the rent.

Holbert mainly works in the Fort Worth area.

“The area that I work in is poverty ridden.”

In this industry some people take advantage of low income families, Holbert said. So he does his part to help families in need. Although tenants might struggle making their payments, he chooses these homes because they’re cheap and easier to fix up.

“Real estate has always interested me and I have always thought I could get wealthy from it”, Holbert said.

He looks for homes that are run down, condemned, and not of interest to most realtors or buyers. After Holbert and his team make the improvements, the once dilapidated homes are appealing.

“I look for a house that’s really in bad shape. Then I put a vision of what it can look like and I make it happen.” He said.

The recession will not last forever. So Holbert is trying to position his company to weather the downturn and become profitable again.

“It will improve because we have a great president. I think he is a lot more intelligent than the last president. He understands what it is to be down.”

WEEK 7: July 13th with EXAM 3 on Saturday, July 18th On-campus

2009-07-11T17:47:00.000-05:00

*Read Chapters 12, 17, and 18 view video/audio clips, do practice problems etc. (the usual routine)
*EXAM 3 Tuesday, January 6th from 10:00 AM to 11:30 AM in Room 147. Exam 3 will cover chapters 8, 9, 10, 11 (big chapter!), 12, 17, 18, and 19.
Please bring your PHOTO ID, pencils, calculator, and Scan-tron answer sheet.
*TVM Tutorial Final Deadline. Please turn-in at 10 AM. You must complete this or I have to give you an automatic 'F' for the course.

Reminder: Next Exam

2009-07-07T23:38:00.001-05:00

The next exam is a week from this Saturday. Just a friendly reminder. Hope you are keeping up this the material!

WEEK 6: July 6th

2009-07-04T17:46:00.001-05:00

*Read Chapters 19 and 11 view video/audio clips, do practice problems etc. (the usual routine for each chapter).
*Please note that Chapter 11 is a very big chapter with lots of additional materials to cover from the website.

Heads-up

2009-06-29T21:37:00.003-05:00

Exam 3 contains a large amount of information. Although we will take a couple weeks to cover the material, you must keep up with the assignments each day going forward.

Also, it is important to remember that the final exam is cumulative (will cover the entire course).

TVM Tutorial Completions Posted to WebCT

2009-06-29T21:31:00.002-05:00

Your TVM Tutorial status (complete or no complete) has been posted to WebCT.

TVM Tutorial Completions Posted to WebCT

2009-06-29T21:31:00.000-05:00

You TVM Tutorial status has been posted to WebCT.

WEEK 5: June 29th

2009-06-27T17:45:00.000-05:00

*Review Exam 2 on-line. Link will be posted on the course blog.
*Read Chapters 8, 9, and 10 view video/audio clips, do practice problems etc. (the usual routine for each chapter).
*If you are interested in pursuing the Investment Problem Bonus Option, please review the Investment Problem clips this week.
(You will need to start practicing the IP now. Please note that for the IP Exam, you will receive the IP assumption only and you will have to work through the problem without any template or notes.)

Exam 2 Results Posted to WebCT

2009-06-27T11:52:00.002-05:00

Exam 2 results have been posted to WebCT. We will use WebCT to review Exam 2 (no audio/video clip for Exam 2).

At your convenience, please log on to WebCT and you will find a new "Exam 2 Review" exam setup under the WebCT category of "Tests." Please take this exam again as a review. You may now submit answers until you choose the correct answer. This review will be available until the end of the summer semester.

Exam 2 On-line this Saturday

2009-06-26T15:19:00.001-05:00

Please have your UTA student ID ready and available during the on-line exam on Saturday. Thank you. jah

Exam 2 On-line this Saturday

2009-06-25T14:22:00.002-05:00

Exam 2, our on-line exam, will be administered through WebCT this Saturday starting at 9:50 AM. Please logon at 9:50 AM sharp (please note that you may need to refresh your WebCT browser to view Exam 2).

I have a posted a short, three question survey for a little practice with WebCT testing procedures.

GTA Contact Information: 2009SummerClass@gmail.com

2009-06-21T13:22:00.000-05:00

Mr. Seo is our Graduate Teaching Assistant for REAE 3325 Online. His main responsibilities will include time-value-of-money tutoring, TVM tutorial grading, and examination administration and grading.

Seo was the TVM Tutor for the Department of Finance and Real Estate so he is an expert with this aspect of the course. If you have any questions about time-value-of-money or the TVM tutorial, you may contact him at 2009SummerClass@gmail.com. You can converse by e-mail, phone, or make a face-to-face appointment. If you would like Seo to call you, please include you phone number in the e-mail.

Exam 2 Scores and Online Practice Module on WebCT

2009-06-20T23:12:00.003-05:00

Exam 1 grades have been posted to WebCT. Your WebCT scores include a one question curve. Your grade was calculated by taking the number of correct questions and adding one. This amount is the numerator and the denominator is the total number of questions (35 total questions). All of the exam statistics for the class are also posted on WebCT.

I have not posted TVM completion status. Please give until the end of next week to post TVM completions.

This coming Saturday is Exam 2, our one on-line exam. I have created a very short, three question practice model to make sure we are all using WebCT correctly. When you check your exam score, please go t0 the assignments and tests section and complete this three question model (should take you no more than a minute). Thanks!

WEEK 4: June 22nd with EXAM 2 on Saturday, June 27th On-line

2009-06-20T17:44:00.000-05:00

*Review Exam 1 on-line. Link will be posted on the course blog.
*Individual exam scores will be posted on WebCT.
*Read Chapters 5, 6, and 7 view video/audio clips, do practice problems etc. (the usual routine for each chapter).
*Exam 2 will be held online on Saturday, June 27th at 10 AM to 11 AM. Exam 2 will cover chapters 2, 3, 4, 5, 6, and 7.
*This exam will be 50 or fewer true-false and multiple-choice style questions.
*You must log into WebCT promptly by 9:50 AM (exam will start at 10 AM).

Exam 1 Review Posted

2009-06-20T12:06:00.002-05:00

I have just posted the link for the exam 1 review. You can find this link on our course homepage under the Week 5 assignments.

To link to the exam review wmv file directly, please go to http://www.uta.edu/faculty/hansz/3325/summer/exam1Su09.wmv.

Thanks to everyone for being prepared for exam 1. From an administrative standpoint it went very smoothly.

Seo and I are currently working on grading the exams. I hope to have your Exam 1 scores posted by Sunday night.

Student Question: Qualifying the Buyer

2009-06-16T16:45:00.001-05:00

Answer to student question (below):

Let me know if you had any technical difficulties viewing this video. One student has so far but I checked it and it seems to be ok.

The answer to Qualifying the Buyer Problem 1 is on the bottom of the course homepage and pasted below. PI stands for Principle and Interest which is call the 'Debt Service' or mortgage payment. This is calculated using your calculator based on the terms of the mortgage. The MHE starts with PI and adds items like monthly property taxes, insurance, homeowners association dues, and mortgage insurance, if applicable.

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

Student Question:
On problem 1, in the video for Mortgage Underwriting, i am having extreme difficulty in trying to figure out how you came up with the MHE of $743.22. I'm not sure if i'm completely missing something, but i cant find any information in the text and i have tried several ways of adding up the numbers to try and get even close to that number. Also, what is meant when you say "debt service of $614.23?" Please explain how to calculate MHE. Thanks!

WEEK 3: June 15th with EXAM 1 on Saturday, June 20th On-campus

2009-06-13T17:41:00.000-05:00

*Read Chapters 2, 3, and 4 (lots of material in these chapters), view video/audio clips, do practice problems etc. (the usual routine for each chapter).
*Chapters 2, 3, and 4 will be on EXAM 2 but you will need to cover these chapters at the beginning of Week 3.
*Exam 1 on Saturday, June 20th at 10 AM to 11 AM in room 147 Business Building.
*The exam will cover chapters 1, 13, 14, and 15. Also, this exam will have emphasis on TVM.
*The TVM Tutorials are due at the start of the exam 10 AM on June 20th.
*Please bring your UTA photo ID, a Scan-tran answer sheet (as specified in the syllabus), pencils, and your calculator (see exam instructions below).
*Exam 1 will be 50 or fewer multiple choice style questions.
*Bring your completed TVM tutorial (with original signed certificate page) OR your TVM prior completion form.

WebCT Setup

2009-06-11T10:54:00.003-05:00

WebCT is now setup for the course. Please remember that we only use WebCT for posting grades and administering EXAM 2 online. Never contact me through WebCT e-mail. Always use reae3325online@gmail.com.

Please log-on to your WebCT and verify that you are enrolled in the course.

Thank you!

Week 2: June 8th

2009-06-06T17:40:00.000-05:00

*Record the four exam dates in your calendar (also include the TVM deadline date).
*Read chapter 14 and view video clip (as always, do end of the chapter problems and exercises).
*Read and watch the video clips for the "Review Materials for Real Estate" pdf packet. Complete problem set 2 (review video clips for answers).
*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 at the start of the first exam.
*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."
*Read chapter 15 and view video clip (as always, do end of the chapter problems and exercises).
*Finish the TVM or the TVM prior completion form.
*Complete the "Review Materials for Real Estate" pdf packet problem sets 2 and 3. This is found near the Ch 14 materials.
*Read and watch the video clips for "Review Materials for Real Estate" pdf packet. Complete problem set 3 (review video clips for answers).
*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.

Census Date

2009-06-06T17:39:00.000-05:00

Census Date is Monday, June 8, 2009

Grade Posting Information

2009-06-05T13:00:00.000-05:00

GRADES will be posted on WebCT. https://webct.uta.edu (login using your UTA username and password) Please do not call or e-mail requesting grades!

Student Question on Underwriting Video Clip

2009-06-04T14:53:00.001-05:00

Answer to student question:

I am watching the clip right now and it appears to be ok. However, it did look like there was a problem with the very first slide. Let it run for a couple minutes and you should see the second slide.

If you have further difficulty, please let me know. This material is fair game on the first exam and final exam.

Cheers,
jah

J. Andrew Hansz, Ph.D., CFA
Associate Professor
Department of Finance and Real Estate
University of Texas, Arlington
Box 19449
Arlington, TX 76019
e-mail: ahansz@gmail.com
website: www.uta.edu/faculty/hansz

House for sale near UTA campus. See http://sites.google.com/site/1205Briarwood

STUDENT QUESTION:

Dr. Hansz,

I was viewing the video clip for Chapter 13 yesterday. I wanted to let you know that on the last video for the chapter 13, Buyer Qualifications, the slides were not all working. I saw the first couple of slides, but as you clicked through them, the page became blank. The two problems on qualifying the buyer that you presented, I was not able to view. Will there be problems on the test like the ones you presented? I checked the powerpoint slides and did not see the problems on the slides. I do not think that there is a problem with my computer, as I have been able to see all the other slides on the video as you present them, but I could be wrong. Just wondering if you have heard from other students about not being able to see the slides.

Thank you,

Dr. Hansz's Office Hours: M W 2 to 4 PM

2009-06-03T16:27:00.003-05:00

My office hours will be from 2 to 4 PM on Mondays and Wednesdays. Please note, I will not have office hours on June 15, 17, 22, and 24.

Student Question: WebCT

2009-06-03T11:48:00.001-05:00

Answer to Student Question:

The class will be added after the Census date. No grades yet so we will not need WebCT for the time being. jah

J. Andrew Hansz, Ph.D., CFA
Associate Professor
Department of Finance and Real Estate
University of Texas, Arlington
Box 19449
Arlington, TX 76019
e-mail: ahansz@gmail.com
website: www.uta.edu/faculty/hansz

House for sale near UTA campus. See http://sites.google.com/site/1205Briarwood

Student Question:
I understand WebCT will only be used for posting/checking grades, but I am not able to see the class through WebCT. It is not there. I called the helpdesk and they told me to check with you to see if you've uploaded the class to WebCT for student view. Please advise. Thanks in advance.

Reminder: View Orientation Clip and Read the Syllabus

2009-05-29T16:00:00.002-05:00

Just a friendly reminder to please view/listen carefully to the 1 hour 9 minute orientation clip and read the syllabus carefully. Probably, 90% of the questions I get at the start of class are covered in the orientation/syllabus material. After reviewing these materials, please feel free to send your questions to me at reae3325online@gmail.com.

Student Question: TVM Prior Completion Form Download

2009-05-27T11:39:00.003-05:00

Student Question:

I'm in your online class and I was reading your syllabus about the TVM tutorial. I have already completed this and I see you have a link on your syllabus to a PDF of the TVM completion form. The link was not working. I was wondering if you could e-mail me the completion form as I could not find it anywhere on the UTA website.

Response:

First, you need to make sure you have Adobe reader installed on your computer.

Can you "right click" on the link to the pdf then save the file to your desktop (then open it from you desktop)? Try this because the link works from my computer.

Finally, if you are near campus, you can always pick-up a hard copy of the form at the Department of Finance and Real Estate (room 434 Business) during business hours.

Week 1: June 3rd (but you can start earlier!)

2009-05-24T17:36:00.000-05:00

*Check-in by sending an e-mail to Dr. Hansz at reae3325online@gmail.com.
*Read chapters 1 and 13 and view video clips for these chapters (as always, complete all end of chapter problems and exercises).
*Read and watch the video clips for the "Review Materials for Real Estate" pdf packet. Complete problem sets 1 (review video clip for answers).
*Start the TVM tutorial.
*Record the four exam dates/times in your calendar (also include the TVM deadline date).

IMPORTANT CLASS DATES AND DEADLINES: Summer 2009 8-week Session

2009-05-20T17:51:00.001-05:00

Exams and Assignment Deadlines (Please record these dates in your personal calendar at the start of the semester! No make-up exams!)

*EXAM 1 Saturday, June 20, 2009 at 10 AM On-campus in room 147 Business Building.

*TVM Tutorial Deadline Saturday, June 20, 2009 (will be collected at the start of the exam).

*Census Date Monday, June 8, 2009.

*EXAM 2 Saturday, June 27 at 10:00 AM On-line.
(must be on-line at 9:50 AM for 10 AM start using a reliable Internet connection)

*Last Day to Drop Thursday, July 16, 2009.

*EXAM 3 Saturday, July 18, 2009 at 10 AM On-campus in room 147 Business Building.
*Final deadline for Blog Post Extra Credit assignment is July 18, 2009(see syllabus, you are encouraged to post earlier)

*FINAL EXAM Saturday, July 25, 2009 at 10:00 AM On-campus in room 147 Business Building. (cumulative final exam)
*Investment Problem Extra Credit will be held in conjunction with the final exam on July 25th (see syllabus).

*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 to discuss the conflict. No make-up exams but remember, I drop your lowest grade.

ATTENTION ALL SUMMER SEMESTER REAE 3325 ONLINE STUDENTS AND PROSPECTIVE STUDENTS!

2009-05-20T17:50:00.001-05:00

PLEASE READ THE FOLLOW BEFORE REGISTERING FOR THIS SECTION:

This is an ONLINE LEARNING SECTION. Students registering for this section should be highly motivated, disciplined, and capable of self-study and independent learning. Also, you should expect to put in 50% to 100% more time into an online class over and above a traditional face-to-face class. If you have any doubts about your motivation, discipline, ability to learn independently, or available time, I highly recommend that you consider taking this course during a full semester where we offer several traditional face-to-face sections (mornings, afternoons, evenings, and even Saturday sections on occasion).

8-WEEK SUMMER SESSION WARNING: This course will cover a lot of material and move very quickly. In fact, we will cover the same amount of material in this Winter Session as we do in a normal 16 week semester. This course should be your primary focus over the 8 week Summer Session period.

THREE OF FOUR EXAMS WILL BE HELD ON CAMPUS! See below for examination dates and location (all on-campus exams will be held in room 147 Business Building). All exams will be objective style (multiple-choice) questions. Only the final exam is cumulative. In addition, there will be one Internet based exam. You must be available on-line for this exam (see exam dates and times below).
Your primary information sources for this course will be your (1) textbook, (2) video clips, (3) practice problems, and (4) student blog. In addition, I will have office hours for additional help. Please note that WebCT is used for administering Exam 2 and posting grades. Never contact me through the WebCT e-mail function. Always use reae3325online@gmail.com.

TVM ANNOUNCEMENT: You must complete the Time Value of Money (TVM) Finance Tutorial to receive credit for this course. The TVM Finance Tutorial is a Department requirement of all REAE 3325 and FINA 3313 students. If you have already completed the TVM Finance Tutorial in FINA 3313 you DO NOT have to do it a second time. You may submit a TVM Finance Tutorial prior completion sheet to Mr. Yongho Seo, Department of Finance and Real Estate, Room 424 COBA, Box 19449, Arlington TX 76019-0449. Click here to down load a pdf of the TVM Prior Completion Form.

FINANCIAL CALCULATOR: You will also need a basic financial calculator which can be purchased at the UTA bookstore, Wal-Mart, Circuit City, Fry's, and other retail outlets. Most students use a Texas Instruments (TI) or Hewlett Packard (HP) brand calculator. Exam 1 will cover the TVM material, so you need to move quickly on this.

VIDEO CLIP VIEWING INFORMATION: You must have a reliable computer, Internet connection, and a recent version of MS Internet Explorer (IE) browser (video clips can be viewed in IE only). For video clip viewing, the Firefox browser will not work. I cannot help you with any technical problems so please look into your available resources before registering for the course. If you have trouble with your computer, Internet connection, or browser, this distance learning format will not be convenient to you. You can reach the University HelpDesk at (817) 272-2208 or e-mail helpdesk@uta.edu. Or, visit the HelpDesk in person at the first floor of the Main Library (the best way if you are on campus).

Welcome Summer 2009 8-Week Session Students

2009-05-20T17:26:00.003-05:00

Welcome to REAE 3325 On-line for Summer 2009 (8-Week Session).

To get started please send an e-mail to Dr. Hansz at reae3325@gmail.com. Please use this e-mail only (and no need to copy me with any other of my e-mail addresses).

Next, visit the course homepage at www.uta.edu/faculty/hansz. Click on the link for REAE 3325 Online Summer 2009. Please read the material at the top of the website carefully then find the syllabus and orientation video/audio clip. If you e-mail me questions that are covered on the orientation clip, I will ask you to review the orientation clip again.

Finally, please make note of all the examination times and locations. Three of the four exams will be held on-campus and all exams will be administered on Saturdays starting at 10 AM.

Final Course Letter Grades Posted

2009-05-09T17:27:00.003-05:00

Your final course letter grades have been posted to WebCT. I will be posting your Final Exam grades and bonus points, if applicable, in the next couple days.

Week 16 (May 4, 2009):

2009-05-03T14:07:00.000-05:00

Final Exam Week and (optional) 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 optional Investment Problem Bonus) is on Saturday, May 9th 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.)

Exam 3 Grades Posted to WebCT

2009-04-30T18:31:00.001-05:00

Sorry for the delay. I have been away from a reliable Internet connection.

Grades have just been uploaded to WebCT. Please check your Exam 3 grade. Thank you.

TVM Completions Posted to WebCT

2009-04-30T14:34:00.003-05:00

Sorry about the delay here. I have the TVM completions to WebCT.

Interestingly, I have up to 10 students who did not turn in the TVM tutorial. Please don't forget, you automatically get a "F" grade for the course if you do not successfully complete the TVM tutorial.

Week 15 (April 27, 2009):

2009-04-26T14:07:00.001-05:00

*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.
*Review Exam 3. Please download the file at www.uta.edu/faculty/hansz/3325/online/f08/exam3S09.wmv

Exam 3 Review Posted (use the address below)

2009-04-25T16:18:00.002-05:00

The review for EXAM 3 has been posted. Please download the wmv file at the following address: www.uta.edu/faculty/hansz/3325/online/f08/exam3S09.wmv.

I will be posting the exam scores and updated TVM completion to WebCT, but this might not be accomplished until the end of the week. I will make a blog post as soon as WebCT has been updated.

Blog Bonus Submission: Share the Problem and the Blame

2009-04-24T22:47:00.002-05:00

Blog Bonus Submission
Share the Problem and the Blame

Turn on the news or radio, open up a newspaper or magazine or simply talk with friends’ family and co-workers and the state of our nations economy will be discussed, dissected and judged. At the very heart of our financial woes lies the mortgage crisis and ever-increasing foreclosure rates, as we see more and more people removed from their homes and forced to find alternative living situations. Most of us are quick to blame big business and banks for their greed and investors and regulators for their lack of foresight and discipline, yet who’s really to blame for this financial blunder that is bringing our nation to its knees?

To understand the problem, it requires a look into the past to see where we began and the reasons behind those decisions. Since the Great Depression, federal regulation has changed the mortgage lending industry in an effort to create equality and uniformity in the lending process. Generally speaking, the government prefers people to own homes rather then rent since this provides many benefits to both the homeowner as well as our governing bodies. One such effort was the 1977 Community Reinvestment Act (CRA) which attempted to provide home loans to low-income individuals and families who did not meet the credit or financial criteria. Many feel that this was an effort to help minorities and other segments of our population who had been historically denied the same opportunities as others. While the debate on whether the CRA was created by left-winged lobbyists or provided needed opportunities sparks interesting conversation, that fight will have to wait for another day. This act laid the foundation for companies to provide sub-prime mortgages to borrowers who did not meet their high standards, allowing businesses to loan money to riskier individuals. In the nineties, banks began to see more and more pressure to extend these loans even further and the standards they had previously set began to slide lower and lower. According to Thomas J. DiLorenzo, a professor of economics at Loyola College in Maryland and author, banks have been pressured, coerced and forced into lending billions in the sub-prime market, bringing risk and bad assets to their company and the industry.

Wikipedia reports that as of March 2007, the subprime mortgages value was an estimated $1.3 trillion making up between 18%-21% of the total originations between 2004 and 2006. This number jumped from less than 10% in 2001 to 2003; while these subprime loans would comprise almost half of the total foreclosures of 2007 and roughly 16% of subprime adjustable rate mortgages were either 90 days past due or were already in the foreclosure process. At the same time we hear stories of a single woman on disability purchasing a home worth $300,000 or a family making less than $35,000 a year refinancing their home for $400,000 and getting $100,000 cash out. We wonder how lenders could be so blind and find it impossible to understand why investors are putting billions of dollars into these terrible loans. To understand how these kinds of things are happening, I spoke with a friend who is currently going through foreclosure and will soon lose his house.

His name is Matt, he is 26 years old, single and purchased a home in Arlington in 2003 for $225,000. When he was approved for the loan, he and I were roommates and two of our friends, who were also roommates, decided it would be a great idea for us to find a house to rent, rather then live in apartments. At some point, Matt decided he could buy a home and we could pay him rent, thereby offering him a return on his investment. He called various banks mortgage lenders, including Countrywide Home Loans, Wells Fargo and First Option Mortgage and was promptly denied by all three since his credit was in the mid 500’s and his debt to income ratio was staggering. Even their subprime mortgage department turned him down as his numbers didn’t fall into even their low guidelines. He then went to an individual mortgage broker who told him it wasn’t a problem and he would get him approved, which he did. Matt got the money, got the home and the four of us moved in to his beautiful home soon after.

Five years later, Matt continues to work his job waiting tables and working valet on the weekends in Dallas, but the rest of us have moved on and moved out. He has other roommates from time to time, but more often than not he’s not getting the income that he needs to pay his mortgage. We looked over his original loan paperwork and discovered that not only had the broker changed Matt’s credit score, but he changed his job, his income and financed the property as a rental with the Matt actually making money from the people he was supposedly renting to. The broker did the deal, charged a $7,500 brokerage fee on top of the $2,500 in other fees added into the loan and promptly sold the loan to Countrywide.

Countrywide, one of the original companies that denied Matt, now owned the servicing rights to the loan, but had sold the actual loan via mortgage backed securities through Fannie Mae. Not only did the broker make a killing on the loan, but he set it up as a one year interest-only ARM loan, despite assuring Matt that it was a 30 year fixed, principle and interest payment loan. Rates steadily increased from 2003 to 2008 and every year Matt saw his interest only payment go up and up, while his balance remained the same. Since then, the broker has closed up shop and is nowhere to be found.

I see two major issues that the majority of us fail to realize and the media fails to mention in their analysis and judgment of the situation: there were a lot of small brokers, firms, title companies and appraisers that plaid a key role in the lending of subprime mortgages and individuals should also be responsible for their actions, in spite of the underhanded dealings of banks and brokers. In the end, many of the people who are in foreclosure or are behind on their payments never should have purchased or refinanced their home to get cash out because they were unable to afford doing so. Just because a bank is willing to give you money, doesn’t mean you should take it; each of us is responsible for what we do. If they bank or broker was dishonest, you still enjoy a three day right of rescission on your primary residence, three days to comb the paperwork to make sure everything is in order and correct. If you are unable to do so or don’t want to take the time, hire an attorney to do it for you. How many people who were misled would have paid a few hundred dollars to an attorney if they could have prevented the situation they are in?

My point is simple, yes banks made bad loans, yes the government failed to regulate properly, but how many times can we blame others for our mistakes? Many people are in terrible situations and have lost most, if not everything and I truly feel sorry for them. I’m sure it was a very hard lesson to learn, but hopefully we will all realize that we have to be responsible and make sure that our own business is in order when it comes to our finances.

Kenneth M Sturgill

http://en.wikipedia.org/wiki/Subprime_mortgage_crisis
http://www.lewrockwell.com/dilorenzo/dilorenzo125.html

Blog Bonus Submission

2009-04-24T12:48:00.001-05:00

The Changing Face of Irving, TX

For many North Texans life and the Dallas Cowboys are twisted into one thing. The same can be said about Irving, TX. On October, 24, 1971 the Dallas Cowboys made the switch from the Cotton Bowl to the newly built Texas Stadium, and put my home town of Irving on the map. As you can already see from the new stadium being built in Arlington, and what we heard from the professionals during business week, new stadiums are explosive to local economies. They create new jobs, new roads, and new businesses, which completely transform a community into something new and better. In the 1960’s Irving had a population of about 50,000 people, and after the stadium was built the population boomed to the 200,000 plus population estimate we have today. But what happens to a city when its main attraction is gone?

In 2004, Irving lost its partnership with the Cowboys when Arlington voted to build a new stadium in its city. 2004 was also the first year that Irving voted to allow the sale of alcoholic beverages. Irving was already anticipating the loss of revenues created by Texas Stadium, but this proposition was voted down. In late 2008 it was voted on again, and passed, I believe because residents were anticipating the loss of the city’s largest revenue earning real estate property. With the Cowboys leaving and a lagging economy, the city is looking to transform its downtown into more of a Downtown Dallas type of feeling. Plans for new housing communities, condos, lofts, bars, and restaurants are all in the works. Downtown Irving is not much to look at right now, with only a few historical buildings, some banks, and other small businesses. McDougal Companies is company in charge of the redevelopment process With the Trinity Railway Express line stop right in downtown; it connects Irving directly to DFW airport and to Downtown Dallas. This is a prime location for redevelopment and will greatly compliment all the development that has been done in the cities northern areas of Las Colinas and Valley Ranch. Different apartment complexes in the Downtown area that “haven’t met code” have already begun to be demolished to make room for the new project. I am completely for Irving to clean up this area and redevelop, but it is interesting to see how the city quickly goes about creating new codes and stricter enforcement of an area they have neglected for years when they see a potential for profit. New ordinances are also changing the face of Irving. The first of which is on multifamily housing, making apartment owners clean and improve there properties, if they want to keep them. Other ordinances are involved with sign standards, convenience store standards, and commercial standards. All of which are supposed to create a more visually appealing Irving.

A team of agents for the McDougal Company have been canvassing the downtown area informing the people of their project and making offers for their homes. My best friend and his wife lived in the neighborhood, and had met with one of the agents on several occasions. The agent let my friends know that this was going to be a ten year project and that they were just in the early stages of it. The agent then talked about how they were going to rejuvenate the area into a downtown city life. A new housing community would be built to replace their old homes. The company plans to buy all the homes in the area without the city having to use the power of eminent domain. Since the project has a large economical potential, the city has the power to take the property for public use. He then offered them a chance to sell their house to the company. After of few months of negotiation with the agent, my friends decided to sell there 88,000 dollar home for 118,000. Thirty thousand dollar turn on a house in this economy, and for only owning the property for two years is great. With only a small percentage of the homes sold so far, who knows how high they will be willing to go for each property.

The potential for this project is endless. If this area is developed just right, Irving can become the new Frisco, right in the heart of the Dallas metroplex. Instead of being stuck in traffic for hours, a business person working in Dallas could hop on the train and take a 20 minute trip right to their front door. I was ready to move out of Irving when I graduated, but I am now thinking of buying some real estate in the area because of the great investment potential. The Dallas Cowboys have brought on great change for Irving and Arlington, and it will be very interesting see how far that change goes in the next decade. Hopefully the change will breathe new life into Irving and create a new real estate market. If you leave in the Irving area, check out the Irving website for new updates on the project.

By Brian Wisdom

References

City of Irving Website
http://www.ci.irving.tx.us

Irving Information
http://www.city-data.com/city/Irving-Texas.html

Dallas Cowboys History
http://www.nflteamhistory.com/nfl_teams/dallas_cowboys/stadium.html

Local Residential Housing Crisis

2009-04-24T12:40:00.006-05:00

Bonus Blog Submission:
Local Residential Housing Crisis

By: Henry Bauer

Background

Foreclosures are reaching all time highs in many areas that were traditionally stable. The Dallas Morning News reports more than 90,000 vacant home sites available for buyers to purchase - many in far suburban areas of Dallas-Fort Worth. The economy has affected many industries including housing and real estate. People are desperately looking to rid themselves of any decreasing assets. Thousands of foreclosure signs are being put up in front of homes around the Unites States. So is this a buyer’s market? What are potential buyers doing? Are people using this as an opportunity to buy or should buyers wait for the market to stabilize?

Local Foreclosures

According to Steve Brown of The Dallas Morning News, “Home foreclosure filing in the Dallas-Fort Worth area has risen to a record high, with more than 5,500 properties facing forced sale next month. And the number of houses threatened with foreclosure in May rose 25 percent from a year earlier, breaking all previous records, according to statistics released Thursday by Addison-based Foreclosure Listing Service.” Most of these foreclosures are due to the fallout of the economy, resulting in homeowners being unable to pay their mortgage.

Homeowners

The biggest problem lies in the fact that local home owners cannot get rid of these toxic assets. Many sellers in this situation are desperately posting their homes for sale, but no one is responding. “They have no choice but to continue posting the properties for foreclosure while they negotiate with the borrowers,” says George Roddy, Foreclosure Listing Service president. Most of the current foreclosure postings are repeats, meaning they have been posted and heard no responses so they are forced to post again.

Builders

With the struggle to sell the homes that are currently owned, the market is flooded with homes and builders are having a difficult time reducing their inventory. Much of the home construction has been cut back due to the lack of available financing. There are numerous empty lots that are ready to be developed, but there is no financing to fund them. “Home starts have declined almost 67 percent, while the lot supply has fallen only 2 percent,” said local housing analyst Ted Wilson.

Local Investors

While the housing prices are low, wouldn’t it be best to invest now and take advantage of the low prices? Some would tell you yes. Others think waiting it out is an option that may prove to be positive in the near future. Larry Taylor is a businessman that is sure that this is a time to take advantage of the current housing situation. He has recently formed a partnership with an affiliate of Starwood Hotels and Resorts to buy land and lots in the DFW area. “We did this in the late 80’s, when we bought tons of property from the FDIC and RTC.” They would buy these cheap properties and fix them up to turn a profit. According to The Dallas Morning News, “Taylor’s new TD Star Land plans to invest $75 million in lots and vacant residential land in the D-FW area.” While Taylor and some investors see this as a time to pounce, other investors think time is what it will take to rebound. “As the demand for new homes strengthens, the demand and prices of lots will quickly firm up in the high-growth area,” said David Brown, who heads the Dallas office of housing analyst MetroStudy Inc. Most of the lots available today will probably be picked up by investors in the future rather than potential homeowners as in the past.

Conclusion

The bust in real estate in the DF-W area has definitely taken it toll on the local citizens, but it may ultimately create more opportunity for investors and stabilize the economy in the future. If investors have the courage to invest funds in houses and wait, with time these investments will stimulate the economy by providing affordable homes.

Works Cited

http://4.bp.blogspot.com/_N_vrglIqnJs/SCrV6u7l0YI/AAAAAAAAAYY/cTcPFgT9uAs/s400/April%2B2008%2Bforeclosures%2Bchart.jpg “US foreclosures chart picture”

http://www.dallasnews.com/sharedcontent/dws/classifieds/news/homecenter/realestate/stories/041709dnbuslots.355be8e.html “Lots!”

http://www.dallasnews.com/sharedcontent/dws/classifieds/news/homecenter/realestate/stories/041609dnmetforeclosure.dff07822.html “HIGH FORECLOSURES picture"

http://blogs.trb.com/features/family/parenting/blog/decision-making.jpg “investor search picture”

“Filings jump to record,” The Dallas Morning News, April 17, 2009, p. 1D.

“What’s on investors’ minds? Lots!,” The Dallas Morning News, April 17, 2009, p. 5D.

Blog Bonus Submission: Christopher Nguyen

2009-04-23T12:38:00.003-05:00

To Rent or To Buy a Home, that is the Question!

How does a person decide to rent a home/apartment or to purchase a house? What advantages and disadvantages are there to owning a home compared to taking the cheaper route by paying monthly for an apartment or leasing a home? When is a person ready to purchase? Is my credit good enough for a mortgage loan? Do real estate brokers have my best interest or are they just earning their paycheck? These are among many other questions that most people often ask when it comes to home buying. However this topic is hard to determine the answer and can still be undecided after hearing an answer. After researching these topics dealing with real estate, I have come up with some information to determine which choice could possibly be better and hope that it will be a great help to anybody that reads this!

As of right now, I am currently renting out an apartment. This is due to my circumstances of being raised in Houston, Texas but moving to Arlington Texas to pursue my education. Hoping one day to graduate and find a good paying and secure job in the future. Because of where and how I live, I often question myself if I should continue renting or to step it up and purchase a house. Since there has always been rumors about apartments and leasing homes are considered throwing your money away. Given that the economy nowadays is worse than before, there have been many claims of falling house prices, historically low interest rates, and tax credits that are encouraging renters to become homeowners. According to Bruce Norris, “there are still going to have a tremendous amount of foreclosures, price declines, and best opportunities to buy properties at amazing prices”, after reading this statement, many people become more interested in obtaining a house. But the real question is “if that is a good idea?” or are statements like this; tricks to suck people into blowing off their money by buying houses that they can afford, but isn’t a necessity. With even more encouragement from Bruce stating “the affordability has never been this high.” announcements like this can trap people by continuingly pushing them to consider acquiring a house, instead of saving for their family’s future, if not their own.

Although the economy for purchasing houses is great, there can also be a negative side to this impact as well. For example, if the economy is doing so bad than doesn’t that mean many organizations and businesses are loosing money as well? This can result too many layoffs and termination of jobs. How does a person that can afford a house at present time know if they can afford it in the near future? Without knowing if one has the job security to remain with their company for at least five or more years, one can reconsider about purchasing a house. Many people feel that renting can be a huge benefit compared to buying a home since it can be cheaper. But just because there are great interest rates for mortgage loans nowadays, it doesn’t mean that everybody and anybody will be able to obtain these rates. Bad credit can affect a person’s rate majorly, which in the end can give many people high interest rates still. Another benefit from renting is how easy it is to terminate a lease, in a case of relocating jobs or being laid off. But most of all, the greatest factor to renting is based on if the right home or apartment complex has been chosen, which can save a lot of money by not only paying cheaper monthly payments but one can continue to save money every month too. Choices like determining if it really is a good idea to live in luxury now, and possibly encounter troubles later; or to continue renting and saving money while focusing on a more luxury life in the future can be a huge risk.

After analyzing the economy and figuring out if one has enough job security with a stable income that flows through their pockets constantly. The next topic to consider about home owning are the advantages and disadvantages between renting and owning. A couple of advantages for renting is that there are fixed costs for the term of lease, as well as no risk when it comes to equity. There is a smaller down payment for renting compared to buying, and there are less maintenance cost and more ease when it comes to relocating. Like everything else, when there is a good to something it will have a bad as well, which are no tax gains, not being able to personalize or modify the rented quarters, and no gain whatsoever on equity. Advantages for buying a house are that the mortgage balance will eventually decrease while equity increases; you can modify the home with unlimited ideas, and if done correctly one can receive a huge tax return from home ownership. While this sounds like a awesome idea to buy, some disadvantages are that most home buyers will need to put down a larger down payment, and maintenance if any can be costly and is provided by the owner. Another huge disadvantage is moving; most people that need to move for any particular reason will most likely need to sell the current home before moving which can result to a loss of time, more work, and more money to sell the house.

In conclusion, I feel that there is no correct answer to either renting or buying. Although renting has no return, it saves people money in short term and is a lot easier to let go. Owning a house can bring great reward in the future, but initially; a huge risk must be taken to purchase a home. One must have great credit for the best interest rates, a very stable job and a huge down payment compared to renting. After all this research about renting or buying a home, I feel that the answer to this question varies for each person, and can sum it down to one phrase; “Only if you can afford it!”

References

http://www.hud.gov/buying/comq.cfm

http://realtytimes.com/rtpages/20090410_houseafford.htm

http://www.ourfamilyplace.com/homebuyer/buyorrent.html

http://homebuying.about.com/od/buyingahome/qt/BuyorRent.htm

Exam 3 Room Change

2009-04-22T16:22:00.000-05:00

We had a scheduling conflict with another group and we need to move Exam 3 to room 239. Exam 3 starts at 10 AM sharp and goes until 11:30 AM.

Please bring your picture ID, Scan-tron, calculator, and pencils. Also, you TVM tutorial if you have not already turned it in.

TVM Tutorial Deadline

2009-04-21T09:51:00.001-05:00

The TVM tutorial deadline is this Saturday. If you haven't already, you may submit the TVM Tutorial at the beginning of the exam. Please remember, that you must have the TVM cover/signature page and all sections or we cannot accept your submission.

Week 14 (April 20, 2009):

2009-04-19T14:06:00.000-05:00

Exam 3 Week and TVM Tutorial Final Deadline and Blog Post Deadline
*Chapter 17 and 18 view video/audio clips, do practice problems etc. (the usual routine for each chapter).
*EXAM 3 Saturday, April 2th 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 Final Deadline and the Blog Post Deadline is also this Saturday. Please turn-in by 10:00 AM.
*****You must complete the TVM Tutorial or I am required to give you an 'F' for the course.*****

Week 13 (April 13, 2009):

2009-04-12T14:05:00.000-05:00

*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 next Saturday. Also, the final TVM tutorial and blog post deadlines are coming up. (see next week's assignments)
*Please read all student blog posts this week. I will ask your help and options regarding their quality and usefulness to the course.

Week 12 (April 6, 2009):

2009-04-05T14:04:00.000-05:00

*Read Chapter 11 view video/audio clips, do practice problems etc. (the usual routine for each chapter).

Drop Deadline!

2009-04-02T14:04:00.000-05:00

April 3rd Last Day to Drop a Class

No office hours this week

2009-03-30T23:49:00.002-05:00

I am attending a conference this week and will not be able to hold office hours. The next available office hours will be Thursday, April 9th.

Week 11 (March 30, 2009):

2009-03-29T14:03:00.000-05:00

*Read Chapters 10 and 19 view video/audio clips, do practice problems etc. (the usual routine for each chapter).

Week 10 (March 23, 2009):

2009-03-22T14:03:00.000-05:00

*Read Chapters 8 and 9 view video/audio clips, do practice problems etc. (the usual routine for each chapter).

Week 9 (March 16, 2009): SPRING BREAK WEEK

2009-03-15T08:55:00.000-05:00

* *Review Exam 2. (click to review exam 2)
*Stay out of trouble.

Exam 2 Review Posted

2009-03-14T23:03:00.000-05:00

The review for exam 2 is posted on our course homepage and grades have been entered into WebCT. Please check your score and review the exam. Contact me if you have any questions.

There was a one question curve on this is exam. Your exam score was calculated based on 44 points rather than 45 points (effectively you get to drop one questions from the exam). To calculate your exam score, take the number of question you had correct and divide by 44.

The TVM Completion list has also been updated on WebCT. There are still a lot of TVM tutorials to be completed. If you have not completed it yet, Spring Break would be a good time to 'get er done.'

Week 8 (March 9, 2009): Exam 2 Week

2009-03-08T14:00:00.000-05:00

*Read Chapter 7 view video/audio clips, do practice problems etc. (the usual routine for each chapter).
* Study for EXAM 2.
*Exam 2 on Saturday, March 14th 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).

No Office Hours This Thursday

2009-03-03T23:03:00.001-06:00

I am in Chicago at the Midwest Finance Association annual conference. No office hours this Thursday. Enjoy the relatively warm Texas weather!

Week 7 (March 2, 2009):

2009-03-01T13:59:00.000-06:00

*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 is on your calendar.

S&P Case-Shiller Conference Call Replay

2009-02-24T10:48:00.000-06:00

S&P released the Case-Shiller Home Price Indices updates this morning and held a teleconference to explain the updates and the review the general state of the U.S. housing market. You will hear about this index in the news but you might also want to hear directly from the source. You are invited to listen to the recorded teleconference.

Replays: Recorded replays of the call are available until Tuesday, March 3, 2009.

Replay numbers: 1-283-368-1822US/Canada: 1-866-501-0097
All Others: 1-203-369-1822

Streaming Audio: The call will also be available live in “listen-only” mode at www.mymeetings.com Under Participant, select join an event Conference ID#: 5354186 and Passcode: SANDP. The Streaming Audio playback is available at www.mymeetings.com/nc/join Conference ID#: PG5354186 and Passcode: SANDP until Tuesday, March 17, 2009. These features require listeners to have the Real Player™ software, sound card, and speakers.

If you have any questions about the conference call, please e-mail: eventsmarketing@standardandpoors.com.

Week 6 (February 23, 2009):

2009-02-22T13:59:00.000-06:00

*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.

TVM Tutorial Completions Updated on WebCT

2009-02-17T11:48:00.001-06:00

I just posted the most recent set of TVM Tutorial completions to WebCT.

House of Cards Special on CNBC

2009-02-17T00:13:00.002-06:00

CNBC has an excellent special called "House of Cards" which take you through the sub-prime mortgage crisis, housing bubble, and the Global economic crisis. Any real estate student or business major or consumer should see it.

You can check out the special at the following website:
http://www.cnbc.com/id/28892719/

Upcoming show times include
Sunday, March 1st 11 PM
Sunday, March 15th 8 PM

Exam 1 Review Posted

2009-02-16T16:49:00.002-06:00

The exam 1 review link has been posted to our course homepage (http://www.uta.edu/faculty/hansz/3325/online/main_spring.htm). Just scroll down to this week's assignments and you will see the link. The exam review is approximately 30 minutes. I will keep the exam review up for the entire semester. Please feel free to contact me with any questions.

Exam 1 Scores Posted on WebCT

2009-02-15T20:32:00.003-06:00

Exam 1 scores have been posted to WebCT. The exam review will be uploaded Monday.

Exam 1 went well (exam statistics are on WebCT). Thanks to everyone for showing up on-time and prepared.

Week 5 (February 16, 2009):

2009-02-15T13:56:00.000-06:00

*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. (A link to an exam review will be posted on the course homepage under "Week 5.")
*Individual exam scores will be posted on WebCT.

Exam Scores on WebCT

2009-02-14T10:05:00.000-06:00

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.

Annoucements

2009-02-13T12:02:00.003-06:00

*Exam 1 in less than 24-hours. See you Saturday, 10 AM in room 147.

*I have updated WebCT with TVM Tutorial completions.

Student Question: Begin Mode

2009-02-12T16:19:00.003-06:00

QUESTION:
Hi, my question is if this asked for the pmts at the end of the the year would you ADD N+1 TO GET THE ANSWER?

7. JLP Enterprises, Inc. owns a small shopping center and it has just signed a fiver-year, triple-net lease for an out parcel with an auto parts retailer that requires annual rent payments of $12,500 at the beginning of each year. If the landlord’s discount rate on this lease is 9 percent per year, what is the present value of the lease?

ANSWER:
Remember, you can always draw a time-line to help you visualize what is going on.

If the cash flows start at the beginning of the compounding period then you have two choices: 1) set you calculator to BEGIN or BEG mode (but remember to set it back to END mode because for most problems, the cash flows occur at the end of the period), or 2) calculate the answer in normal END mode and multiple your answer by 1 plus the interest rate per period (1 + i) (this will effectively start the compounding immediately). Your choice in approaches (but do NOT do both!).

Student Question (TVM)

2009-02-09T12:59:00.002-06:00

QUESTION:

for the excerise on pg 326 of the book. Finding AO60 = 94,379.29

ok first I do, f fin to clear it out

then 7.25 g I to put in monthly interest

300 n for the periodic payment schedule

681.19 PMT

then I hit PV

and get $94,242.3258

ANSWER:

James,

The difference is caused by the round of the PMT. The actual payment is 682.1763. With 300 payments, the rounding can make a significant difference. jah

Week 4 (February 9, 2009): Exam 1 Week

2009-02-08T13:55:00.000-06:00

*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, February 14th 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. Exam 1 will be 50 or fewer multiple choice style questions.
*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).

General Exam Instructions:

2009-02-07T18:00:00.000-06:00

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 Exam’ 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 on-time.
Do not remove test booklets from classroom.
Concentrate and do your best. Good luck!

Economic and Housing Video

2009-02-06T14:08:00.003-06:00

50 minute video on the National and Texas economies and housing markets. This is not required for the exams, but I encourage you to watch. This is very good information you should understand.

http://recenter.tamu.edu/video/videoPlayer.asp?vid=60

TVM Completions Updated on WebCT

2009-02-06T11:31:00.003-06:00

I had 7 TVM completion forms and I updated WebCT. I normally do not update WebCT with TVM completions until after each exam. You can check your grades and TVM status on WebCT anytime.

Census Date

2009-02-03T13:54:00.000-06:00

February 4th Census Date

Week 3 (February 2, 2009): TVM Boot Camp

2009-02-01T13:54:00.000-06:00

*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.

TVM Tutor Hours

2009-01-30T11:19:00.003-06:00

The Time Value of Money Tutor, Mr. Seo, has posted his office hours for Spring 2009. The TVM Lab is located in room 501 Business Building and the phone number is (817) 272-0499. The hours are as follows:

Monday 7 to 9 PM
Tuesday 3 to 5 PM
Wednesday 9 AM to noon
Saturday 9 AM to noon

If you have any problems located the TVM tutor during office hours, please contact the Department Office at (817) 272-3705 or stop by room 434.

Office Hours

2009-01-27T11:35:00.004-06:00

My office hours are as follows:

REGULAR OFFICE HOURS
Tuesdays, Thursdays from 2 PM to 4 PM

However, due to conflicting meetings and conference travel, I will not hold office hours the following days this semester.

NO OFFICE HOURS ON THESE DATES
Tuesday, March 3rd and Thursday, March 5th
Tuesday, March 31st and Thursday, April 2nd
Tuesday, April 14th

TVM submission reminders

2009-01-25T20:01:00.003-06:00

You have many options to submit the TVM tutorial or TVM prior completion form. The easiest might be to just turn in either the tutorial or prior completion form at the start of the exam. Otherwise, you are welcome to drop the tutorial or prior completion off at my office (Room 651) or the Department of Finance and Real Estate office (Room 434, M-F from 9 AM to 5 PM).

PLEASE NOTE! If you are submitting the TVM PRIOR COMPLETION FORM, you must include the year and semester that you took FINA 3313. If you do not include this information, our department administrative assistant will not accept the form and return it to me. I have already had one form returned. Thanks!

Week 2 (January 26, 2009):

2009-01-25T13:52:00.000-06:00

*Record the four exam dates in your calendar (also include the TVM deadline date).
*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."

Chapter 13 Updates...

2009-01-25T13:26:00.003-06:00

As I am sure you have already recognized, Chapter 13 in our text is out of date. The problem with updating Chapter 13, however, is that we are currently experiencing historic changes (both in magnitude and speed) in our real estate financing system and updating Chapter 13 is very difficult at this point. Basically, we need to update Chapter 13 by watching the news, C-Span, and reading about current events. Also, we should study the 'old' system of real estate finance to understand this systems advantages, but also the moral hazards that it had created.

Last semester, one of our graduate students wrote an interesting blog post on the sub-prime mortgage crises that triggered much of this financial turmoil, domestically and globally. I would like to start our updating of Chapter 13 by asking you to read this post (link below). Thank you!

http://realestateprogram.blogspot.com/2008/11/mortgage-company-executives-in-august.html

Office hours start next week

2009-01-21T13:41:00.004-06:00

I will not be in the office most of this week (had a little surgery on Monday and still recovering). I will start office hours next week and announce the TVM tutor's office hours soon, hopefully. Remember, it is a good strategy in this course to attach the TVM tutorial and TVM material early in the semester. Exam 1 is loaded with TVM questions.

Strategies for REAE 3325 Online Success

2009-01-20T20:00:00.000-06:00

For each chapter
• Read the assigned text chapter and view any video clips posted on the class website as
homework.
• 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) and
review 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, and
quiz 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.

Read this First!

2009-01-19T13:47:00.000-06:00

PLEASE READ THE FOLLOW BEFORE REGISTERING FOR THIS SECTION:

* This is an ONLINE LEARNING SECTION. Students registering for this section should be highly motivated, disciplined, and capable of self-study and independent learning. Also, you should expect to put in 50% to 100% more time into an online class over and above a traditional face-to-face class. If you have any doubts about your motivation, discipline, ability to learn independently, or available time, I highly recommend that you consider taking one of the other five traditional face-to-face section of REAE 3325 (offered mornings, afternoons, and evenings).
* FOUR EXAMS WILL BE HELD ON CAMPUS! See below for examination dates and location (all exams will be held in room 147 Business Building). All exams will be objective style (multiple-choice) questions. Only the final exam is cumulative.
* Your primary information sources for this course will be your (1) textbook, (2) video clips, (3) practice problems, and (4) student blog. In addition, I will have office hours for additional help. Please note that WebCT is used for posting grades only.
* TVM ANNOUNCEMENT: You must complete the Time Value of Money (TVM) Finance Tutorial to receive credit for this course. The TVM Finance Tutorial is a Department requirement of all REAE 3325 and FINA 3313 students. The TVM Finance Tutorial must be purchased at the UTA Bookstore (cost around $12). You need to purchase this from the UTA Bookstore because it comes with an original certification page you must submit with printouts of all sections. If you have already completed the TVM Finance Tutorial in FINA 3313 you DO NOT have to do it a second time. You may submit a TVM Finance Tutorial prior completion sheet to Dr. Hansz, Department of Finance and Real Estate, Room 424 COBA, Box 19449, Arlington TX 76019-0449.
* FINANCIAL CALCULATOR: You will also need a basic financial calculator which can be purchased at the UTA bookstore, Wal-Mart, Circuit City, Fry's, and other retail outlets. Most students use a Texas Instruments (TI) or Hewlett Packard (HP) brand calculator.
* VIDEO CLIP VIEWING INFORMATION: You must have a reliable computer, Internet connection, and a recent version of MS Internet Explorer (IE) browser (video clips can be viewed in IE only). For video clip viewing, the Firefox browser will not work. I cannot help you with any technical problems so please look into your available resources before registering for the course. If you have trouble with your computer, Internet connection, or browser, this distance learning format will not be convenient to you. You can reach the University HelpDesk at (817) 272-2208 or e-mail helpdesk@uta.edu. Or, visit the HelpDesk in person at the first floor of the Main Library (the best way if you are on campus).

Week 1 (January 20, 2009):

2009-01-18T13:48:00.000-06:00

*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). No make-up exams, but don't forget that you get to drop your one lowest exam score.

Important dates: Please record

2009-01-17T13:46:00.000-06:00

Put these dates in your calendar at the start of the semester! No make-up exams.
*Saturday, February 14, 2009 10:00 AM to 11:00 AM On-campus in room 147 Business Building.
*Suggest deadline for TVM Tutorial February 14, 2009 (Exam 1 contains the TVM material!).
*Saturday, March 14, 2009 10:00 AM to 11:00 AM On-campus in room 147 Business Building.
*Last day to drop a class is April 3rd.
*Saturday, April 25, 2009 10:00 AM to 11:30 AM On-campus in room 147 Business Building.
*Final deadline for TVM Tutorial, April 25, 2009.
*Final deadline for Blog Post Extra Credit assignment is April 25th (see syllabus, you are encouraged to post earlier).
*Saturday, May 9, 2009 10:00 AM to 12:20 PM On-campus in room 147 Business Building. (cumulative final exam)
*Investment Problem Extra Credit will be held in conjunction with the final exam (see syllabus).

Orientation Assignments (please complete ASAP)

2009-01-15T13:44:00.000-06:00

Orientation Assignment (Please do this before registering for the class or ASAP.)
*Read and review this website.
*Record the four exam dates in your calendar (also include the TVM deadline date).
*Visit the student blog site (blog will be setup for Spring session as soon as the Winter semester ends) http://reaeonline.blogspot.com
*Down load, print-out, and read the syllabus carefully. Will be updated soon.
*View Orientation video clip (1 hour 3 minutes).
*Purchase textbook, TVM tutorial, and financial calculator (you need to learn how to use your own financial calculator).

ATTENTION ALL REAE 3325.004 ONLINE SPRING 2009 STUDENTS AND PROSPECTIVE STUDENTS!

2009-01-13T11:42:00.001-06:00

Final Course Grades and Final Exam Grades Posted

2009-01-12T17:54:00.001-06:00

I have posted your final course letter grades and the grades for the final exam. Please note regarding the final, final exam grades were calculated by taking the number of questions you had correct and dividing by 90. Also note, your final course grade includes any blog post or investment problem bonus, if applicable.

January 12, 2009: Final Exam and Investment Problem Bonus

2009-01-12T07:00:00.000-06:00

*FINAL EXAM (and Investment Problem Bonus option) is schedule for Monday, January 12th at 10 AM to 12:30 PM 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.
*The final exam 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.

24 hours before Final Exam

2009-01-11T10:00:00.000-06:00

January 12, 2009: Final Exam and Investment Problem Bonus

January 10, 2009: Assignments

2009-01-10T07:00:00.000-06:00

*Study day for final. Also, you could be working on the Investment Problem.
*Review Investment Problem (IP) clips, if applicable.

January 9, 2009: Assignments

2009-01-09T07:00:00.000-06:00

*Study day for final. Also, you could be working on the Investment Problem.
*Review Investment Problem (IP) clips, if applicable.

January 8, 2009: Assignments

2009-01-08T07:00:00.000-06:00

*Read Chapter 20, view video/audio clips, do practice problems etc. (the usual routine).
*Review Investment Problem (IP) clips. This is an optional bonus problem that will be part of the final exam.

January 7, 2009: Assignments

2009-01-07T07:00:00.000-06:00

*Review Exam 3. Click on this link to download a WMV file.
*Read Chapters 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).

Bonus Blog Submission: Sustainability has Created Career Opportunites in Real Estate

2009-01-06T21:15:00.009-06:00

In recent years, Sustainability and the concept of "Green" buildings has become a very important objective in all facets of Real Estate. Most of the large Commercial Real Estate firms have set objectives to become "carbon neutral" in the next 2-3 years. It makes perfect sense, commercial office buildings are the largest consumers of natural resources such as land, water, and energy sources. The construction of an office building may displace trees, animal habitats, and add material waste to landfills. In an effort to ensure global acceptance of sustainability, certain governmental entities such as the Environmental Protection Agency (EPA) and non-governmental agencies such as the U.S. Green Building Council (USGBC) have created third-party programs to assist Owners of Real Estate achieve "Green." EPA implemented the Energy Star Program. Once certain criteria are met, the property will obtain an Energy Star Compliance placard and signage for the entry of the building. This program is typically for existing buildings. A few years ago, the U.S. Green Building Council established the LEED rating system. This system is for all Real Estate; new or existing, commerical or residential. An owner may choose which level that they would like to achieve. This is somewhat directly correlated with the rent rates or payback that they can achieve on a particular project. Some of the measures to be "green" can involve large upfront costs. Once image and budget goals are established, the building can be designed or retrofitted to be "Green." Energy Star and LEED can be a strong marketing tool and is sought by prospective owners and tenants. The LEED system has opened many job opportunities within the realm of Real Estate. LEED is becoming widely utilized among, architects, real estate managers, designers, engineers, construction managers, lenders, and government offices. Any of the above mentioned disciplines may obtain a LEED accredited professional (AP) designation. Some firms are requiring certain managers to obtain the accreditation as part of their professional development program. Consulting firms have added LEED as a service and able to charge premium hourly fees upwards of $150 per hour for their interpretation and design services. If you are interested in pursuing a LEED AP designation or applying for LEED on a property, please visit the www.usgbc.org website. A study guide may be purchased for $250. In order to successfully prepare for the exam, you must commit to studying the material 40-60 hours. There are also online courses, webinars and private workshops to help prepare for the exam. The exam is administered at a proctoring firm for $200-300. As with other professional designations, there are continuing education credits that will need to be maintained on an annual basis.

More information may be obtained at the following web sites:
http://www.energystar.gov and http://www.usgbc.org

Stephanie Miller