COURSE INFORMATION Course Title: REAL ESTATE FINANCE

Code	Course Type	Regular Semester	Theory	Practice	Lab	Credits	ECTS
BAF 307	C	5	3	0	0	3	5

Academic staff member responsible for the design of the course syllabus (name, surname, academic title/scientific degree, email address and signature)	NA
Lecturer (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	Juliana Imeraj , 8.30 - 11.15
Second Lecturer(s) (name, surname, academic title/scientific degree, email address and signature) and Office Hours:	NA
Teaching Assistant(s) and Office Hours:	NA
Language:	English
Compulsory/Elective:	Elective
Classroom and Meeting Time:
Course Description:	The main determinant of successful investing is paying the right price for the property; therefore the first part of this course deals with property valuation. The next section is dedicated to the sourcing of capital and determination of the optimal capital structure in financing the real estate. The main segments (divisions) of real estate are shown, by giving real world examples. The drivers, metrics and financing structures of these divisions are of great importance. In the end this course will give to the students a good background in real estate essentials, great preparation for further study and career opportunities at one of the world’s oldest professions.
Course Objectives:	During the course of life anyone will deal with real estate industry, either as a buyer or renter of residential property. Therefore, the health of real estate industry is very likely going to impact the career of finance majors. This course provides the students exposure on the essentials of real estate finance and insight on how real estate industry is organized. Since real estate is capital intensive, this course will serve also as a review of class work that students have taken in introduction to finance, accounting and capital markets. Lastly, this course will help in seeing the practical application of the theories learned in the core courses.

COURSE OUTLINE

Week	Topics
1	The Real Estate Industry
2	Legal Foundations of Real Estate Finance
3	Mathematics of Real Estate Finance
4	Fixed Interest Rate Mortgage Loans
5	Fixed Interest Rate Mortgage Loans, continued
6	Adjustable and Floating Rate Mortgage loans
7	Mortgages: Additional Concepts, Analysis and Applications, review and practical session before mid-term exam
8	Mid-term exam
9	Residential Housing, Underwriting and Financing Residential Properties
10	Secondary Mortgage Market, Mortgage – backed Securities
11	Income – Producing Properties,
12	Financing Corporate Real Estate
13	Financing Project Development
14	Review and practical session before final exam

Prerequisite(s):	-
Textbook:	William B. Brueggman & Jeffrey D. Fisher. (2011). Real Estate Finance and Investments, fourteenth edition , Edward A. Glickman. (2014). An Introduction to Real Estate Finance, Academic Press
Other References:
Laboratory Work:
Computer Usage:
Others:	No

COURSE LEARNING OUTCOMES

1	Understanding of legal issues, which are directly related to real estate and financing decisions
2	Identify the main career opportunities in real estate finance
3	Identify characteristics and segments of real estate industry
4	Describe the financial functions performed in real estate industry
5	Understand the main sources of funding and the optimal capital structure of real estate

COURSE CONTRIBUTION TO... PROGRAM COMPETENCIES (Blank : no contribution, 1: least contribution ... 5: highest contribution)

No	Program Competencies	Cont.
Bachelor in Banking and Finance (3 years) Program
1	The students are gained the ability to look at the problems of daily life from a broader perspective. They gain the needed skills not only to understand economic problems in banking and finance but also to construct a model and defend in meaningful way.	5
2	They have knowledge about the finance and banking.	5
3	They have knowledge about the money and banking.	5
4	They have knowledge about the international finance and banking.	5
5	They have ability to use mathematical and statistical methods in banking and finance.	4
6	They know how to use computer programs in both daily office usage and statistical data evaluations in banking and finance department.	5
7	They have necessary banking and finance skills that needed in private and public sector.	5
8	They are intended to be specialist in one of departmental fields that they choose from the list of general economics, finance economics, public finance, corporate finance, finance management, international finance markets and institutions, banking and central banking, international finance and banking, money and banking, international trade and banking.	5
9	They have ability to utilize fundamental economic theories and tools to solve economic problems in banking and finance.	5
10	They are aware of the fact that banking and finance is a social science and they respect the social perspectives and social values of the society’s ethics.	5

COURSE EVALUATION METHOD

Method	Quantity	Percentage
Midterm Exam(s)	1	30
Project	1	20
Final Exam	1	40
Attendance		10
	Total Percent:	100%

ECTS (ALLOCATED BASED ON STUDENT WORKLOAD)

Activities	Quantity	Duration(Hours)	Total Workload(Hours)
Course Duration (Including the exam week: 16x Total course hours)	16	3	48
Hours for off-the-classroom study (Pre-study, practice)	16	3	48
Mid-terms	1	7	7
Assignments			0
Final examination	1	7	7
Other	15	1	15
Total Work Load:			125
Total Work Load/25(h):			5
ECTS Credit of the Course:			5