FINA 210: Introduction to Real Estate (Section AB), 3 Credits Summer 2020

INSTRUCTOR Michel Deslauriers

EMAIL ADRRESS* [email protected]
DEPARTMENT Finance
CLASS TIME Mon 2:45 – 5:30, Wed 2:45 – 5:30
CLASSROOM Zoom classroom (access through Moodle)
OFFICE Virtual
PHONE Phone: (514) 836-6180
OFFICE HOURS By appointment
*preferred means of contact

Introduction This course introduces the concepts, principles, analytical methods and tools used for
investment, development, and evaluation of real estate assets. The course focuses on issues such as
market and feasibility analysis, investment property analysis, forms of ownership, valuation by alternate
approaches, mortgages, borrower-lender relationships, investing in income property, commercial
property financing, real estate investment trusts (REITs), and legal and property rights among co-
owners.

Learning Objectives At the end of this course, students should be able to demonstrate a general
understanding and specific skills on the following:

The real estate industry, market analysis, cash flows and modeling, property valuation, property finance
including development finance, capital markets, mortgage backs securities, housing finance, REITs,
corporate real estate and international real estate.

Textbook (Required)

 Glickman, E. (2013). An Introduction to Real Estate Finance. Elsevier.

An electronic version of the textbook is available, free of charge, through the Concordia Library:

https://www-sciencedirect-com.lib-
ezproxy.concordia.ca/book/9780123786265/an-introduction-to-real-estate-finance

Supplemental Texts/Reading (Optional)

 Brooks, S.M. (2016). Canadian Commercial Real Estate: Theory, Practice, Strategy. RealPac
 Lewis, M. (2011). The Big Short. Norton.

Other Required Material

 Reliable internet access.

 A financial calculator.
  A personal computer with access to Excel, PowerPoint and Word.

Instructional Methods: The main instructional method will be lectures, in-class problem solving and
demonstrations, so class attendance is especially important. Classes will be held through Zoom.

I will use Moodle to facilitate interaction and post announcements. Please check your Moodle account
regularly to be informed about any changes or news regarding the course. In addition, to receive all the
class announcements on time, make sure you have your email connected to your Moodle account.

Schedule Please note that this schedule is tentative. Changes to this schedule may be announced.

Date Topic Chapters Book Review Problems

May 4 Introduction to the Real Estate Industry, Real Estate 1, 2 Chap 1: 1 to10
Investment Process & Market Analysis Chap 2: 1 to 10

May 6 Cash Flow Modeling 3, 4 Chap 3: 1 to 8, 13, 14

May 11 Time Value of Money 3, 4 Chap 4: 1 to 4, 12 to 17

May 13 Property Valuation 5 Chap 5: 1, 3, 5 to 15

ASSIGNMENT 1 SUBMISSION DEADLINE – 11PM

May 20 Debt Financing/Leverage 7, 10 Chap 7: 1 to 8

Chap 10: 1
MCQs: 1, 2, 7, 8
May 25 Equity Financing, Capital Structure 9, 10 Chap 9: 1 to 5, MCQs: 1, 2,
8, 10
May 27 MID-TERM – DURING CLASS TIME
(Covers Topics 1 to 5)
June 1 Real Estate Development 11 Chap 11: 1 to 4, MCQs: 1
to 9
ASSIGNMENT 2 SUBMISSION DEADLINE – 11 PM

June 3 Guest speakers

Case study

June 8 The Financial Crisis, Capital Markets, MBS Chap 6: 1 to 6

ASSIGNMENT 3 SUBMISSION DEADLINE – 11 PM

June 10 REITs, Housing Finance 6,12 Chap 12: 1, MCQs: 2, 3, 6,

7, 9
Chap 13: 1 to 5, MCQs; 4
to 8, 10
June 15 Corporate Real Estate, International Real Estate 13,14,15 Chap 14: 1 to 10
Chap 15: 1 to 5, 9
June 17 Review
 ASSIGNEMENT 3 SUBMISSION DEADLINE – 11 PM

Course Assessment and Evaluation

Deliverable Weight Submission Method

Assignments 20% Online
Case Study 30% Online
Midterm 25% Online
Final 25% Online
Final exam is comprehensive i.e. it includes all topics. If you miss the midterm examination, the weight
will be added to the final exam provided that an acceptable reason/proof for your absence is submitted.

Numerical Scores and Letter Grades Letter grades will be assigned based on the table below.

A+ 90-100 B+ 77-79.99 C+ 67-69.99 D+ 57-59.99 FNS <50

A 85-89.99 B 73-76.99 C 63-66.99 D 53-56.99
A- 80-84.99 B- 70-72.99 C- 60-62.99 D- 50-52.99
More information about the grading system, examinations, and performance requirements is available
in Undergraduate Calendar. Grades are not rounded.

Exam Procedures: All exams will be online through Moodle and timed. It is your responsibility to
ensure that you have a reliable internet connection and the required facilities and equipment to
complete the exams.

Case Study: There will be a case study which will require some internet research and the completion of
an Excel based financial analysis of a potential real estate investment.

In class demonstration of how to use Excel for this project will be provided.

Distribution of course material: Content shared in this course belonging to the instructor, including, but
not limited to, online lectures, course slides, assignments, exams and video recordings of classes remain
the intellectual property of the instructor. It may not be distributed, published or broadcast, in whole or
in part, without the express permission of the instructor. Students are also forbidden to use their own
means of recording any elements of a class or lecture without the express permission of the instructor.
Any unauthorized sharing of course content may constitute a breach of the Academic Code of Conduct
and/or the Code of Rights and Responsibilities
Plagiarism: The most common offense under the Academic Code of Conduct is plagiarism, which the
Code defines as “the presentation of the work of another person as one’s own or without proper
acknowledgement.” This includes material copied word for word from books, journals, Internet sites,
professor’s course notes, etc. It refers to material that is paraphrased but closely resembles the original
source. It also includes for example the work of a fellow student, an answer on a quiz, data for a lab
report, a paper or assignment completed by another student. It might be a paper purchased from any
source. Plagiarism does not refer to words alone –it can refer to copying images, graphs, tables and
ideas. “Presentation” is not limited to written work. It includes oral presentations, computer assignment
and artistic works. Finally, if you translate the work of another person into any other language and do
not cite the source, this is also plagiarism. In Simple Words: Do not copy, paraphrase or translate
anything from anywhere without saying where you obtained it! (Source: The Academic Integrity
Website: http://concordia.ca/students/academic-integrity )

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Disclaimer In the event that the University is unable to provide services or that courses are interrupted
due to events beyond the reasonable control of the University, including classroom disruptions, the
University reserves the right to modify any element contained in the course outline including but not
limited to the grading scheme and the weight accorded to exams or assignments.