FINA 320 /AA

Winter 2022
Real Estate Investment
Day: Wednesday 17:45 – 20:15
In-person lectures
Credits: 3

Instructor: Yanting Wu

Office Hours: By appointment

Email: [email protected]
[email protected]

The best way is to write to [email protected]

Important Note:
Due to exceptional circumstances, this course will be taught, and all assessments will be completed
completely online. Given the subject matter and nature of this course, a final online exam will be provided
through Moodle. Please note that in enrolling for this course, you are agreeing to:
 That you will be responsible for ensuring appropriate, properly functioning technology (webcam, a
microphone, Chrome browser, as well as a reliable internet connection).
 That you will need a quiet place within which to attend lectures and take the quizzes and the final
exam.

A Note about Emails:

All emails to the instructor MUST include “FINA 320 (AA) – your subject heading” in the subject
line.

Moodle:
Most course materials, including course outline, handouts, problem sets and announcements will
be posted at Moodle. Solutions to the handouts WILL NOT be uploaded. If you miss class, you need to make
up your notes with your classmates.

Textbook:
Real Estate Principles: A Value Approach, 6th edition, David C Ling, and Wayne Archer, Hardcover, ©2021,
(Publisher: McGraw-Hill/Irwin), ISBN-13 9781260013931

Real Estate Finance and Investments, 16th edition, William B Brueggeman and Jeffrey D Fisher, (Publisher:
McGraw-Hill/Irwin), ISBN-13 9781259919688.
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Financial Calculator:
A financial calculator is required for this class. Any financial calculator is acceptable; however, the Texas
Instruments BA II Plus is recommended and will be used for instructional purposes. If you choose to
purchase a different brand/model, you are responsible for ensuring that you learn how to operate it (the
Texas Instruments BA II Plus can be found for < $40 new on Amazon). Several financial calculators,
including the aforementioned models, are available at Bookstore. The student must bring the financial
calculator to every class.

Course Description:
We will develop and use a framework for evaluating direct and indirect real estate investment vehicles. For
most of the time, we will focus on commercial real estate, which produces a series of cash flows. Hands on
exercises, readings and exams focus on several questions: What drives the value of commercial real estate?
How do you go about investing in real estate? How do you choose among different ways to finance your
investment? How do you calculate your taxes? What is the relation between real estate and your other
investments?

Grading:
10% 1 Quiz
15% Group Case Presentation
35% Mid-term Exam
40% Final Exam

90 and above is A+
85 – 89 A
80 – 84 A-
77 – 79 B+
73 – 76 B
70 – 72 B-
67 – 69 C+
63 – 66 C
60 – 62 C-
57 – 59 D+
53 – 56 D
50 – 52 D-
< 50 FNS

* D- is the minimum requirement to pass the course. Decimal grades above .50 will be rounded up.

Please refer to section 16.3 of the Undergraduate Calendar for more information about the grading system,
examinations, and performance requirements.
(http://registrar.concordia.ca/calendar/16/16.html#16.3)

Student Responsibilities:
1. Attendance

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All the quiz and exams will be conducted in class. Students are responsible for any materials covered in
class, including any changes in course assignments, etc., that might be agreed by the instructor and the
majority of the class. Please be noted that some of the handouts and/or practice problems will be distributed
in class ONLY. Students are responsible for any missing materials if they are absent. Additionally, any
student who does not attend the class after an exam where the exams are discussed does not receive any
“curve” or other such general adjustment that might be allocated.

* In case of predicted absence due to religious beliefs and important family events, the instructor should be
informed by email and by Mar 21, 2022 (Deadline for withdrawal). In case of unpredicted absence due to
medical reasons, the student should email a scanned copy of an official document (e.g., a doctor’s note) to
the instructor. Any notice after the final exam will not be accepted.

2. Quiz
There will be one quiz that accounts for 10% of the final grade. Please be noted that no makeup quiz will be
given.

Possible Format: Multiple Choice

No formula sheet. Closed book and closed note. Only a basic financial calculator and writing instruments
are allowed.

3. Case Presentation (Group Work)

There will be one case presentation with a group of 4 to 5 students. This presentation accounts for 15% of
the final grade. Details will be posted on Moodle

2. Emails
Normally, emails will be responded within two business days during class dates. However, the instructor
might not respond emails in the following situations:
2a. Announcements/Issues already made or discussed in class.
2b. Emails within 24 hours before exams.
2c. Emails asking for any “favorable adjustments” (such as extra assignment or project to boost the
grade), especially after the final exam.
2d. For questions regarding calculations, students should be specific about the procedure they
employ in order to solve those questions in the emails as technical details are difficult to explain.

3. Course Materials
Notes (taken in class) and slides serves as the major course materials. These materials are modified based on
the resources provided by the publisher and the instructor’s previous teaching experience. Students are
expected to review the slides/handouts carefully, with understanding. The instructor will not cover all the
text materials, but will concentrate on key materials and those with which students have historically needed
more assistance.

Moodle should be checked at least 2x per week for slides, handouts, notes or announcements. Practice
problems and solutions will be posted for your practice. Practice problems are not handed in and will not be
graded.

4. Mid-term Exams （ will be hosted on COLE and will be online proctored with
Proctorio）
There will be one mid-term exam on Feb 23. If the student misses the mid-term exam with qualified reasons
(e.g., doctor notes), all the exam grades (i.e. 35% of the final grade) will be allocated to the final exam. No
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makeup exam will be given. It is very important to plan your schedule in advance. Please see the mid-
term exam schedule on the last page of this document.

Possible Format: Multiple choice, True/False, Short Answer, Calculations.

The university has a policy on exams, please refer to http://www.concordia.ca/students/exams.html

5. Final Exam
Please be noted that the final exam is administered by the examination office of the university. Please note
that the final exam is compulsory to pass the course.

Possible Format: Multiple choice, True/False, Short Answer, Calculations.

The university has a policy on exams, please refer to http://www.concordia.ca/students/exams.html

Academic Integrity:
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 could be material copied word for word from books, journals, internet sites, professor’s course notes,
etc. It could be material that is paraphrased but closely resembles the original source. It could be the work
of a fellow student, for example, an answer on a quiz, data for a lab report, a paper or assignment completed
by another student. It might be a paper purchased through one of the many available sources. Plagiarism
does not refer to words alone - it can also refer to copying images, graphs, tables, and ideas. “Presentation” is
not limited to written work. It also includes oral presentations, computer assignments and artistic works.
Finally, if you translate the work of another person into French or English 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: http://www.concordia.ca/students/academic-integrity.html)

Useful Links:
1. Department’s Academic Advisor: MB 4th Floor for JMSB academic advising where students are able to meet
advisors
2. Counselling and Psychological Services:
https://www.concordia.ca/health/mental-health/counselling.html
3. Concordia Library Citation and Style Guides:
https://library.concordia.ca/help/citing/
4. Student Success Centre:
https://www.concordia.ca/students/success.html
5. Health Services:
https://www.concordia.ca/health.html
6. Financial Aid and Awards:
https://www.concordia.ca/offices/faao.html
7. HOJO (Off Campus Housing and Job Bank):
https://www.csu.qc.ca/services/hojo/
8. Academic Integrity:
https://www.concordia.ca/conduct/academic-integrity.html
9. Access Centre for Students with Disabilities:
https://www.concordia.ca/students/accessibility.html
10. CSU Advocacy Centre:

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https://www.csu.qc.ca/services/advocacy/
11. Dean of Students Office:
https://www.concordia.ca/students/life/dean-of-students.html?utm_source=redirect&utm_campaign=dos
12. International Students Office:
https://www.concordia.ca/students/international.html
13. Student Hub:
https://www.concordia.ca/students.html
SCHEDULE (Tentative)

Sessio Date Materials Covered, Deliverables

n
1 Jan 12, 2022 Introduction
Time Value of Money Review
(readings: L&A Chps 1, 14, 15)
2 Jan 19, 2022 Basic Ownership Structures
Mortgage
(readings: L&A Chps 2, 15, 17; B&F Chp 18)
3 Jan 26, 2022 Property Tax
Capital Markets
Types of Commercial Real Estate
(readings: L&A Chps 4, 17, 22)
4 Feb 2, 2022 Lease Types and Calculations
Real Estate Cycle
(readings: L&A Chp 22; B&F Chp 11)
5 Feb 9, 2022 Appraisal Review
- DCF
- Income approach
(readings: L&A Chps 8, 9, 18)
Quiz #1 (17:45 – 18:45)
6 Feb 16, 2022 Investment Valuation
- Unlevered and levered NPV/IRR
- Before and after-tax NPV/IRR
(readings: L&A Chps 18, 19, 20)
7 Feb 23, 2022 MID-TERM
MID-TERM BREAK
8 Mar 9, 2022 Mortgage-Backed Securities (MBS)
- History of Secondary Mortgage Markets
- Mortgage-Backed Bonds (MBB)
- Mortgage Pass-Through Securities (MPTS)
(Readings: L&A Chps 17, B&F Chps 19, 20)
9 Mar 16, 2022 Guest speaker (TBD)
Mortgage-Backed Securities (MBS)
- Collateralized Mortgage Obligations (CMO)
10 Mar 23, 2022 Private Equity Funds
Portfolio Analyses and Real Estate Funds
(Readings: B&F Chps 18, 20, 23)

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 11 Mar 30, 2022 Real Estate Investment Trusts (REITs)
(Readings: L&A Chps 17, B&F Chps 21)
12 Apr 6, 2022 Group Presentation
13 Apr 13, 2022 Group Presentation

NOTE: Changes to this document will be announced in class or posted on Moodle. It is the student responsibility to keep informed of what is said and
done in class. Student absence IS NOT a valid excuse for not keeping informed.

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