Home: FIN 183

Please read before registering

  • Your primary information sources (in addition to this website) for this course will be your (1) textbook, (2) class discussions/lectures, and (3) www.gazarian.info.  In addition, I will have office hours for additional help.  
  • FINANCIAL CALCULATOR: You will also need a basic financial calculator which can be purchased at the Fresno State bookstore, Wal-Mart, Circuit City, BestBuys, and other retail outlets.  Most students use a Texas Instruments (TI) or Hewlett Packard (HP) brand calculator.  If you purchase a HP 12C, I highly recommend the 12C Platinum.
  • You will also need access to Excel for spreadsheet related assignments.

Orientation assignment 

Required materials

  • Read and review this website.
  • Record the four exam and three blog post deadline dates in your calendar (no make-up exams).
  • Visit www.gazarian.info.  Book mark this site and check regularly. 
  • Print-out and read the syllabus carefully.
  • Purchase textbook and financial calculator (you need to learn how to use your own financial calculator).
  • Purchase Scantron Form 882-ES from the Fresno State bookstore for each exam.  

Blog post assignments (3)


  • Both blog post assignments will be posted to www.gazarian.info.  Instructor will provide direct posting rights. 
  • Students typically write the blog post in Word or similar word processor and then cut and past to the blog.
  • See schedule for blog post deadlines.
  • Be prepared to discuss/present your blog post to the class (time permitting).
  • Blog Post Assignment 1: Information interview in real estate finance
    • Information on the information interview technique will be distributed in class.
    • Find someone who works in the field of real estate finance or related areas.
    • Develop a questionnair for your interviewee.
    • Administer the questionnair, preferable in person, to your interviewee.
    • Write up and post your interview on our class blog.
  • For detailed instruction on how to conduct an Informational Interview, please see https://docs.google.com/document/pub?id=15zrocrl8k19cxmQsLE4ZX7h92bHvG9Cb8PKC_JGCE4c
    Blog Post Assignment 3: Ethics in real estate finance
    • Five paragraph format required.  
    • Topic must be related to ethics in the area of real estate finance.
    • This is a research assignment and at least three references are required.
    • You will select and sign-up for a topic in-class.

    • The general format required for blog posts 1 and 3 is five paragraphs.
        • First paragraph is the introduction.
        • Second to fourth paragraphs incorporate the body.
        • Fifth paragraph is the conclusion.
 

Please see the general blog post grading rubric at General Blog Post Rubric.


Review assignment
  • Review Materials (TVM Review) for Real Estate

  • According to the prerequisites to this course, you should be comfortable with time value of money (TVM) calculations (this is real important material!).  If you are not up to speed with TVM, you ned to get up to speed very quickly.  The material in the section will help you. 

         Review Materials for Real Estate (pdf download)

         Review Materials for Real Estate Audio/Video Clips (.WMV):*

              HP calculator overview

  • Practice with your calculator (the time value of money menu).  
  • Make sure you know how to set your calculator's "payments per year" function.
  • Know how to switch back and forth between "Begin Mode" and "End Mode."

              Introduction

              Time-value-of-money (TVM) Part I

              TVM Part II

              Problem Set 1

              NPV/IRR

              Problem Set 2    

              Mortgage Calculations

  • *Note: These links are to .WMV files.  You can try to click directly on this link to start your media player, however, you will likely need to download this clip on to your desktop, then double-click on the downloaded file.  To download this file, "right click" on the link above.  In the menu that appears, select "Save target as..." and save this file to your desktop.  Go to your desktop and double-click on the file to start.

    Financial Calculator

    The gadget spec URL could not be found
    Time value of money formulas 
    Future value of a lump sum: FV = PV(1+i)n

    Present Value of a Lump Sum: PV = FV [1/(1+i)n 

    Present Value of an Annuity: PVA = A[(1-(1/(1+i)n ))/ i]

    Future Value of an Annuity: FVA = A[((1+i)n -1))/ i]

    Sinking Funds: SFP = FVA [ i / ((1+i)n -1))]

    Mortgage Payments: PMT = PVA [ i / ((1 - (1/(1+i)n )))]

     

Photos: class

Let's create a class slide show.  If you like, send a picture of yourself and a second photo of something of interest to you.  Send pictures by e-mail attachment to hansz@gazarian.info. Please remember that this is a public website.



Important dates 

Calendar

Put these dates in your calendar at the start of the semester! No make-up exams. 

  • Blog post 1 Investors/Exchangers Meeting, sign up for due date
  • Blog post 2 Ethics, sign up for due date

  • Communities Facility Challenge (CFC) Kick-off, January 23rd
  • CFC teams formed, January 28th
  • CFC Buildings assigned, January 30th
  • CFC Student Site Visit to Poverello House, Saturday, February 2nd
  • CFC Planning & Architecture workshop I, February 6th
  • CFC Real Estate Finance workshop, February 13th
  • CFC Planning & Architecture workshop II, February 20th
  • CFC Analysis/Reports Due, April 17th
  • CFC Student Presentations Due, April 24th (Awards Reception 5-7 PM)

  • EXAM 1, Monday, February 25th
  • EXAM 2, Monday, April 8th
  • EXAM 3, TBA (scheduled by the University during final exam period)

General information

  • A note on WMV files.  You will be required to download and view several WMV files.  You can try to click directly on this link to start your media player, however, you will likely need to download this clip on to your desktop, then double-click on the downloaded file.  To download this file, "right click" on the link above.  In the menu that appears, select "Save target as..." and save this file to your desktop.  Go to your desktop and double-click on the file to start.
  • Do you know an individual or company that would like to sponsor a class or topic in this course?  If so, contact Dr. Hansz at hansz@gazarian.info for more information.

Text Chapter PowerPoint











Chapter 11 (no slides)





Chapter 21 (no slides)


  • Photos: Fun



    Downloads

    Amortization Table

     

    General exam instructions

    • Please answer the following questions by selecting the best answer on your Scan-tron answer sheet.  Be very careful of erasure marks.  Your mark on the Scan-tron answer sheet is your final answer.  I suggest circling all answers in your test booklet and filling in the answer sheet at the end.  For the True/False questions, ‘A’ equals ‘True’ and ‘B’ equals ‘False.’  Please note: 

      • Keep your quiz booklet closed until the quiz is officially started.
      • You will need a basic calculator (no manuals), pencils, and a Scan-tron answer sheet.  Place your photo ID on the desk, photo-side up.  Put all other materials away.
      • Do not share calculators during the exam.
      • Remove baseball caps.
      • Turn-off/put away all pagers/cell phones and other communication devices.
      • Write your name and ‘FIN 183 Exam X’ on the Scan-tron answer sheet.
      • You may mark (write-on) the exam booklets.
      • Do not look around the room or make any noise.  If you have a question, raise your hand and I will come to you.
      • Keep your Scan-tron answer sheet and test booklet in front of you.  (Don't let the person behind you look off your papers.)
      • Answer the questions that you know and return to the question you don’t know toward the end.  Do not spend too much time on any one question.
      • Please watch your time as we must finish on-time.
      • Do not remove test booklets from classroom.
      • Concentrate and do your best.  Good luck!

     

    Strategies for success

    For each chapter

    • Read the assigned text chapter as homework.

    • Download the chapter notes (found on my website) and review the notes.

    • Try the end of chapter problems.

    • Download the answers to selected end of chapter problems (found on my website) and review your answers.

    • Take notes during the video clips and rewrite/organize your notes afterwards.

    • Read the text chapter a second time.

    • Download and complete the chapter true/false questions and discussion questions.

    Real Estate Dictionary


    Other study suggestions

    • Make flashcards.

    • Read your notes into a tape recorder (and playback).

    • Take notes as you read the text.

    • Combine (rewrite) your class notes and text notes into a single set of notes.

    • Study several hours per day everyday (do not wait until the night before the exam).

    • Study with a friend or small group (discuss terms and topics, try problems together, and quiz each other).  You could meet virtually in Second Life!

    • Do the case studies accompanying the text found on the student CD (not a requirement).

    General comments

    • To protect your privacy, exam scores and final grades will not be posted in public spaces, e-mailed, or released over the phone.

    Answers to "Review Materials for Real Estate Fundamentals" practice problems

    TVM Problem Set 1

    1.    $24,464,43
    2.    $25,093.31
    3.    $1,738.91
    4.    $4,755.19
    5.    $675,764.89
    6.    $14,381.74

    TVM Review: Problem set 2 Answers

        1)      10% compounded semi-annually (1.05^2 = 1.1025; 1.0238^4 = 1.0984)
        2)
          19,236.15
        3)
          98,111.31
        4)
          5,575.46
        5)
          22,601.66
        6)
          15.94%
        7)
          6,357.56

    TVM Review: Problem set 3 Answers

        1)      ANN: 15 – 25,288.30 25-20,519.45  MO: 15-2,067.95 30-1614.72
        2)
          14,043.41
        3)
          Yes, NPV = 10,850.30
        4)
          13.22%
        5)
        PMT = 103,873.36 
                a.
           Balance end of year 5 equals 961,283.21
                b.
          Balance end of year 15 equals 801,472.49
        6)
          PV = 854,972.16
        7)
          79,612.63 + 220,436.31 = 300,048.94
        8)
          PMT = 638.58 (724.26 – 638.58 = 85.68)
        9)
          IRR = 16.2%; NPV = 1,306.20
        10)
        68,640.81

     Problem Set 4

        1)   a) 19,876.60                b) 1,903,479.15
        2)
       48,076.30 + 159,263.83 = 207,340.13
        3)   Investment 1 IRR = 9.57%       Investment 2 IRR = 10.18% or 9.94% assuming annual compounding
        4)
       N=60, I = 12%, Pmt = 657.56, FV= 88,000 then 657.56 (pmt) + 120.00 (taxes, insurance, maintenance) = $777.56 rent
        5)
       $1,365.86
        6)
       8.5%
        7)
       12.14%
        8)
       NPV = $209.94                       IRR = 12.27%
        9)
        a) 10.36%        b) 4,378.29
       10)
      163,028.46
       11)
      1,294.88
       12)
      137,243.36

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