Key Questions… What? – Identify key terms and concepts that are important to real estate finance decisions Why? – Explain why those terms are important How? – Illustrate how those terms and concepts are applied in practice

The Basics Mortgages Traditional Finance Methods Alternative Finance Vehicles Fixed rates, variable, CPM, reverse annuity, price level, risks, yields, incremental costs, LTV, refinancing, prepayment Residential, underwriting, closing, settlement, corporate real estate, project and land development financing Course Map Notes, mortgages, default, foreclosure, bankruptcy, time value of money, compounding, yield, IRR Ventures, syndicates, secondary market, pass through securities, CMOs, MBS, CMBS

Schedule 4

Open House Thursday Afternoon Informal – drop by my office (N-305) 2:30 – 4:30 Learn more 5

Real Estate Club The BEST club at MTSU Open to ALL majors Learn things that apply to the rest of your life Make some awesome friends Hang out with creative, entrepreneurial dudes Limited space, act now, while supplies last! 6

Homework… Bring an article from a local or national source that involves real estate finance Be prepared to speak in front of class

Today Introductions Syllabus Overview So, what the heck is “real estate finance” and why do we care about it? Dynamic Terminals “Build To Suit Program” 8

Syllabus – Key Points Be on time and participate! (just like in the “real world”) Be polite (think of technology…) Don’t cheat, me or yourself Check D2L frequently, things change The syllabus may change at my discretion Stay in touch with me, learn the fine art of “brown nosing” 9

Syllabus – Key Points Basic Evaluation System You are in charge of “rounding”, not me… 10

Syllabus – Key Points Tests are hard and easy – You will have ALL the questions in advance – You will have D2L quizzes to prepare – NO surprises, except your bad grade if not ready Projects will take time – We have a whole semester to work on it – You will know exactly how you will be graded – I am here to help and coach you all the way 11

Syllabus – Key Points Participation / Discussion (P/D) – P/D Points will be assigned to a variety of activities – On time to class – as needed – Out of class assignments – In person and online discussions – Events and meetings – Special projects – You can’t just sneak in and sleep 12

Introductions Index Cards – Name and nickname – Major / Minor – When you graduate – Interests and what you do for fun – Home town – Your interest and/or background in real estate Speak up!!! 13

Discussion – if time! So what is real estate and what do real estate people do??? Repeat your name. Speak up!!! Everyone… Nice job (insert name!) 14