SRJC Course Outlines

9/24/2022 6:14:52 PMRE 52 Course Outline as of Fall 2005

Changed Course

Discipline and Nbr:  RE 52Title:  REAL ESTATE FINANCE  
Full Title:  Real Estate Finance
Last Reviewed:5/14/2018

UnitsCourse Hours per Week Nbr of WeeksCourse Hours Total
Maximum3.00Lecture Scheduled3.0017.5 max.Lecture Scheduled52.50
Minimum3.00Lab Scheduled06 min.Lab Scheduled0
 Contact DHR0 Contact DHR0
 Contact Total3.00 Contact Total52.50
 Non-contact DHR0 Non-contact DHR Total0

 Total Out of Class Hours:  105.00Total Student Learning Hours: 157.50 

Title 5 Category:  AA Degree Applicable
Grading:  Grade Only
Repeatability:  00 - Two Repeats if Grade was D, F, NC, or NP
Also Listed As: 
Formerly:  RE 80E

Catalog Description:
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Analysis of real estate financing, including lending policies and problems in financing transactions in residential apartments, commercial, and special purpose properties. Methods of financing properties emphasized. Applies toward State's educational requirements for the broker's examination.


Recommended Preparation:
Eligibility for ENGL 100 or ESL 100 AND BMG 54.

Limits on Enrollment:

Schedule of Classes Information
Description: Untitled document
Analysis of real estate financing, as applied toward the requirements for the California broker's exam.
(Grade Only)

Recommended:Eligibility for ENGL 100 or ESL 100 AND BMG 54.
Limits on Enrollment:
Transfer Credit:CSU;
Repeatability:00 - Two Repeats if Grade was D, F, NC, or NP


Associate Degree:Effective:Inactive:
CSU GE:Transfer Area Effective:Inactive:
IGETC:Transfer Area Effective:Inactive:
CSU Transfer:TransferableEffective:Fall 1981Inactive:
UC Transfer:Effective:Inactive:

Certificate/Major Applicable: Certificate Applicable Course


Outcomes and Objectives:
Upon completion of the course, students will be able to:
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Upon completion of this course students will be able to:
1.  Analyze the credit lending environment in terms of local and national
   factors, economic indicators, and the Federal Reserve System.
2.  Evaluate loan analysis including income, assets, credit, and property.
3.  Differentiate, compare and contrast mortgage markets including the
   Federal National Mortgage Association, the Federal Home Loan Mortgage
   Corporation, local banks and savings associations as well as private
   sources of funds.
4.  Examine requisites of commercial lending including collateral, leases,
   and vacancy.
5.  Prepare instruments of real estate financing including notes, deeds of
   trust, and installment sales contracts.

Topics and Scope
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1. Money, credit and the monetary system
     a. Real estate cycles
     b. Federal Reserve System, U.S. Treasury
     c. Federal Home Loan bank system
2. Fiduciary, semi, and non-fiduciary sources for real estate financing
     a. Commercial banks, savings and loans, and life insurance companies
     b. Mortgage bankers/mortgage brokers, trusts, syndications
     c. Federal Housing Association
     d. Veteran's Administration
3. Conventional, insured and government loans
     a. Private sector - conventional loans
     b. Public sector
        1) Federal Housing Administration
        2) Veteran's Administration
        3) Cal-Vet Home Loan Program
        4) California Housing Finance Agency
4. Instruments of real estate finance
     a. Promissory notes
     b. Deeds of trust
     c. Note and mortgage
     d. Sales contract
5. Loan processing and loan underwriting
     a. Verification of income, assets, and credit
     b. Property including collateral
     c. Exhibits, documents, and closing
6. Mathematics of real estate finance
     a. Interest
     b. Payment schedules
     c. Prorations
     d. Discounting

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1.  Reading assignments of between 25 and 40 pages per week
2.  Case studies: residential vs. commercial financing
3.  Exams
4.  Transaction analysis: relation of interest rate environment, choice of
   lender, loan product, purchaser credit rating and how each factor
   influences sales price and finance options
5.  Homework: complete hypothetical purchaser qualification using standard
   industry instruments
6.  Class performance, role playing and oral presentations

Methods of Evaluation/Basis of Grade.
Writing: Assessment tools that demonstrate writing skill and/or require students to select, organize and explain ideas in writing.Writing
25 - 35%
Written homework
Problem solving: Assessment tools, other than exams, that demonstrate competence in computational or non-computational problem solving skills.Problem Solving
0 - 0%
Skill Demonstrations: All skill-based and physical demonstrations used for assessment purposes including skill performance exams.Skill Demonstrations
5 - 10%
Class performances
Exams: All forms of formal testing, other than skill performance exams.Exams
50 - 65%
Multiple choice, True/false, Essay exam
Other: Includes any assessment tools that do not logically fit into the above categories.Other Category
5 - 15%

Representative Textbooks and Materials:
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CALIFORNIA REAL ESTATE FINANCE by Lush and Sirota. 5th Edition.
Dearborn Publishing, copyright 2003

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