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Academic staff member responsible for the design of the course syllabus
(name, surname, academic title/scientific degree, email address and signature)
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NA
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Main Course Lecturer (name, surname, academic title/scientific degree, email address
and signature) and Office Hours:
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M.Sc. Athanasios Paloudis apaloudis@epoka.edu.al
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Second Course Lecturer(s) (name, surname, academic title/scientific degree, email
address and signature) and Office Hours:
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NA
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| Teaching Assistant(s) and Office Hours: |
NA
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| Language: |
English
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| Compulsory/Elective: |
Elective
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| Study program: (the study for which this course is offered) |
Bachelor in Banking and Finance (3 years)
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| Classroom and Meeting Time: |
64 hours, E/B33, Tuesday 08:45 - 11:30
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| Code of Ethics: |
Code of Ethics of EPOKA University
Regulation of EPOKA University "On Student Discipline"
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| Attendance Requirement: |
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| 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.
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| Course Objectives: |
The Real Estate Finance course prepares the students to understand the risks and rewards associated with financing and investing both residential and commercial real estate. Concepts, techniques and problem sets are used in many careers related to real estate. These include investing, development financing, appraising, consulting, managing real estate portfolios, leasing, managing property, analyzing site locations, corporate real estate, and managing
real estate investment funds.
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BASIC CONCEPTS OF THE COURSE
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| 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
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| 2 |
They have knowledge about the finance and banking.
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| 3 |
They have knowledge about the money and banking.
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| 4 |
They have knowledge about the international finance and banking.
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| 5 |
They have ability to use mathematical and statistical methods in banking and finance.
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| 6 |
They know how to use computer programs in both daily office usage and statistical data evaluations in banking and finance department.
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| 7 |
They have necessary banking and finance skills that needed in private and public sector.
|
| 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.
|
| 9 |
They have ability to utilize fundamental economic theories and tools to solve economic problems in banking and finance.
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| 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.
|
| Week |
Topics |
| 1 |
Introductions to Real Estate market, finance and Investments. Definition, real estate transformation throughout the years, key participants and business chain. |
| 2 |
Real Estate Investment, basic legal concepts. Real Estate Financing, Property Rights and Estates, Notes and Mortgages. |
| 3 |
The mortgage instrument. Definition of mortgage, land contracts, default, foreclosure and bankruptcy. Financing can be a very important component of investing in real estate. In general, when investors desire to obtain financing, they usually pledge, or hypothecate, their ownership of real estate as security for loans. In many cases, investors also pledge personal property to obtain loans. An introduction to notes and mortgages, two legal instruments that are used frequently in real estate financing. |
| 4 |
Time Value of Money. An introduction to the mathematics of finance, sometimes referred to as the “time value of money,” (TVM) and the involvement of borrowing in a real estate purchase on a long or short time basis. Understanding the process of compounding in finance in relationship with the compound interest. |
| 5 |
Fixed interest rate and mortgage loans. Various approaches to pricing and structuring fixed interest rate mortgage loans. By pricing a loan, we refer to the rate of interest, fees, and other terms that lenders offer and that borrowers are willing to accept when mortgage loans are made. |
| 6 |
Single-Family Housing: pricing, investment and tax considerations. Focus on single-family residential housing as an investment. An analysis of home-ownership as an alternative to renting, the characteristics of supply and demand for housing, pricing, federal income tax treatment for homeowners, and investing in “distressed” properties. |
| 7 |
Income producing properties: Leases, Rents and the Market for Space. Identification of the major property types and the economic forces that affect their value and consideration of supply and demand relationships, location analysis, and the competitive nature of the real estate business. |
| 8 |
Midterm exam |
| 9 |
Valuation of Income Properties: Appraisal and the Market for Capital and Investment Analysis and Taxation of Income Properties. The investor must consider many variables when acquiring income properties, among them market factors, occupancy rates, tax influences, the level of risk, the amount of debt financing, and the proper procedures to use when measuring return on investment. Lenders are concerned with many of the same questions because these factors affect the value and marketability of the properties being used as collateral for loans. |
| 10 |
Financial Leverage and Financing Alternatives and Risk Analysis. The risk differences, comparing IRRs or NPVs when making choices among alternative investments is usually not possible. Indeed, such a comparison may be made only if we assume that the risk associated with the different investments being analyzed is the same. Techniques for risk evaluation with the aim to make a more thorough comparison of alternatives. |
| 11 |
Financing Corporate Real Estate and Real Estate Development. Owning, rather than leasing, space used in the operation of the business, investing in real estate as one means of diversification from the core business, retaining, rather than selling, real estate that may have been used previously in business operations and acquiring real estate for future business expansion or relocation are the main topics to be analyzed. |
| 12 |
Financing Project Development. Financing the development of income-producing real estate projects such as apartment complexes, office buildings, warehouses, and shopping centers. Developers of such projects face changing conditions in the national and local economies, competitive pressures from other developments, and changes in locational preferences of tenants, all of which influence the long-run profitability of developing and operating an income-producing property |
| 13 |
Structuring Real Estate Investments: Organizational Forms and Joint Ventures. Legal ownership entity definition and partnership types such as sole proprietorship, general and limited partnerships, LLC, corporation (S & C) and joint ventures focusing on type and purpose. |
| 14 |
Real Estate Investment Performance and Portfolio Considerations. Measurement of the return and risk for various real estate investment vehicles and investment portfolios. The apply of concepts and methodologies based on financial theory and demonstrate possible applications to real estate investments. Course overview. |
| 1 |
Understand Real Estate operations and Real Estate Finance and Investments. |
| 2 |
Understand the Real Estate market and the differences between countries in terms of legal framework, taxation, risk measurement and key participants involvement. |
| 3 |
Understand the legal and financial instruments that applying in the real estate markets and the meaning of risk, of return and the business chain of key players in the real estate market. |
| 4 |
Understand the risks and rewards associated with financing and investing both residential and commercial real estate. Concepts, techniques and problem sets are used in many careers related to real estate. These include investing, development financing, appraising, consulting, managing real estate portfolios, leasing, managing property, analyzing site locations, corporate real estate, and managing real estate investment funds. |
| No |
Program Competencies |
Cont. |
| Bachelor in Banking and Finance (3 years) Program |
| 1 |
The students gain the ability to look at the problems of daily life from a broader perspective with an increased awareness of the importance of moral/ethical considerations and professional integrity in the workplace. |
5 |
| 2 |
They develop their knowledge and understanding of banking and finance including concepts, theories, and analytical tools that serve both in national and international markets. |
5 |
| 3 |
They gain an understanding of the role of financial management in business firms and the essentials of corporate finance and further develop their knowledge in the field. |
5 |
| 4 |
They are able to apply valuation models to estimate the price of different financial assets, measure risk and describe the risk-return tradeoff. |
5 |
| 5 |
They are provided with the knowledge and understanding of the regulatory framework and functioning of banking system and central banking as well as international banking system. |
4 |
| 6 |
They are able to understand and use fundamental economic theories and tools to solve economic problems in banking and financial services industry. |
5 |
| 7 |
They have the ability to develop and utilize accounting, financial and economic data as well as other information to solve different business problems by making use of basic mathematical and statistical models. |
5 |
| 8 |
They are expected to develop their numerical and IT skills as well as knowledge of databases in order to address the significant development in the delivery and use of financial services known as FinTech. |
5 |
| 9 |
They develop their ability to think critically, do research, analyze, interpret, draw independent conclusions, and communicate effectively, both individually and as part of a team. |
5 |
| 10 |
They are provided with opportunities to acquire the necessary skills and competencies to develop professionalism in the banking and financial services industry or to move on to further study within the discipline. |
5 |
