ADDITIONAL COURSE INFORMATION

Your final grade will be determined by:  

1.  Midterm Exam (25%)                     100  Points

2.  Final Exam (25%)                          100 Points

3.  Real Estate Simulation (50%)          200 Points

      Initial Written report……. 15 pts.

      Final Written report……..100 pts.

      Class Presentation.……... 85 pts.

4.  Class attendance                               You can lose up to 20 points for not attending

                                                            class!  Be certain to email me if you will miss class.

  Your final grade will be based on 400 possible points:  

364-400                  A

360-363                  A-

356-359                  B+

324-355                  B

320-323                  B-

316-319                  C+

284-315                  C

280-283                  C-

276-279                  D+

240-275         D      

All exams are open book/open notes.  A financial calculator is a necessity in order to successfully answer test questions.  Financial calculators cannot be shared during the exams.  The exams may cover any assigned materials, my lectures, or guest lectures.

  The major segment of this course is a “hands on” real estate simulation, which involves the purchase and sale of a major investment property in Champaign-Urbana.  This simulation will involve a minimum of 30 hours of your time outside of class, and you will be teamed with four of your fellow students in order to complete this simulation successfully.  If you do not enjoy working with other students, do not take this class!  Each team, consisting of 5 people, must be formed no later than the end of class on Thursday, January 24, 2008.  Your team names and net ID’s must be emailed to Emily Sobut by 8:00PM on Thursday, January 24, 2008.  In the email, each team must also designate a team leader for purposes of coordinating questions and meetings with me. Each team will prepare an initial written report, a final written report, and make a class presentation on one of the following eight aspects of the real estate simulation:

1.              Legal Team:  Determine legal entity, Prepare the offering memorandum,  contract of purchase, etc.

2.              Market Survey Team:  Comprehensive Study of Market Rents for

          Comparable Properties in Champaign-Urbana.

3.               Financial Analysis/Valuation Team:  Determine a fair acquisition

Price and market valuation for the Subject Property.

4.               Financing Team: Investigate alternative sources of financing, secure

financing for the project.

          5.       Property Management Team: Investigate all property management

alternatives and make recommendations.  Determine costs, etc.

          6.       Operational Expense Analysis Team: Determine insurance coverages,

                    examine real estate tax issues, examine pollution issues, management

                    and maintenance issues, income tax issues.

7.               Closing Team: Responsible for the preparation of all closing documents,

coordinating the sale in conjunction with legal counsel, overseeing title

insurance, and preparation of the closing statement.

8.               Future Projections Team: Preparation of Years 1-10 of the resale

of the project. Determine when project should be marketed for sale.

                     Produce a Sales/Marketing Package.

Also, with respect to the class presentation, it should be of very high quality, utilizing power point, color overheads, graphs if necessary, and class handouts.  All members of the team must participate in the class presentation.

Note that a number of these teams will  need to share information among the various teams.  For example, the Financial Analysis/Valuation Team will need inputs from several other teams to more realistically price the project. The Future Projections Team will need input from several teams.

All initial written reports will be shared with all teams.  Therefore, it is important that these initial reports are extensive, well-written, and completed on time!!!  There will be adequate class time to work with other teams on information that you need for your section of the simulation. 

Your team assignment will be drawn at random out of a hat on January 24^th.  You will be required to stick to the deadlines in the syllabus.

Do not take this class unless you are willing to work hard and attend class.  There are several reasons you must attend class.  First, throughout the first 10 weeks of the class, there will be real estate and financial professionals, who will be guest lecturing.  The materials they cover will enable you to complete the real estate simulation. Second, during the last 5 weeks of the semester, each team will be making class presentations on their section of the simulation. Your attendance is required at these presentations.  Third, at the end of the semester, we will have an in-class real estate closing involving a number of professionals. Again, your attendance is mandatory.  Fourth, you can lose up to 20 points for not attending class (see above).