COURSE SYLLABUS

REAL ESTATE FINANCE (DTU306E)

Course name: Real Estate Finance

Course Code: DTU306E
Faculty/School: Banking and Finance
Department: Securities Investment
Credit hours: 3
Prerequisite(s): Principles of Finance (TCH302E)

1. INSTRUCTOR(s) INFORMATION
No. Instructors’ name Email Cellphone Office
1. Dr. Nguyen Phuc Hien hiennguyenphuc@ftu.edu.vn 0975751126 B211
2. Dr. Phan Tran Trung Dung fandzung@ftu.edu.vn 0904216521 B211

2. COURSE DESCRIPTION
This course is designed for students to understand risks and rewards associated with
investing and financing both residential and commercial real estate. The course provides
students a deep understanding of concepts, principles and theories relating to investing and
financing real estate. These include investing, development financing, appraising, managing
real estate portfolios, leasing, managing property, analyzing site locations
The course also helps students learn how to understand these factors, so that they can
perform the right kind of analysis and make informed real estate finance and investment
decisions.
The course begins with a discussion of the legal concepts that are important in the
study of real estate finance and investment. Then a discussion of real estate market, including
commercial and residential properties, is presented.Next the time value of money concepts
for real estate and mortgages is analyzed. This is important because real estate is a long term
investment. Analysises of investing income producing properties and financing for project
development, and alternative real estate financing and investment vehicle are discussed in
this course.
Students are required to have fundamental knowledges of finance and mathematics.

3. COURSE LEARNING OBJECTIVES

On completion of this course, the students should be able to:
CLO1. Understand the fundamental concepts and techniques of investing and financing real
estate.
CLO2. Analyze real estate investment and mortgages in the long term
CLO3. Analyze income property investment such as apartments, office buildings, shopping
centers and so on
CLO4. Understand various alternative real estate financing and investment vehicles

4. COURSE CONTENT AND SCHEDULE

4.1. Course content
No. Content Time Allocation

1
 Hour(s) on the class Exercise,
Self-
Practice, Assignment,
Lecture study
Seminar Field trip
Chapter 1: Overview of real estate
1. 2 1 1.5 4.5
finance and investment
- Real estate investment: Basic legal
concepts 2 1 1.5
- Real estate financing: notes and
mortgages
Chapter 2: Real estate market and
2. 2 1 1.5 4.5
Commercial property leases
- Real estate markets
- The housing market 2 1 1.5
- Commercial property leases
Chapter 3: Income property
3. 2 1 1.5 4.5
analysis
- Computing after tax cash flows
from operations for income
producing properties
- Computing after tax cash flows 2 1 1.5
from reversion for income producing
properties
- The Investments decision
Chapter 4: Financing income
4. 2 1 1.5 4.5
producing properties
- Financial leverage
- Participation loans
2 1 1.5
- Accrual loans
- Convertible mortgages
5. Chapter 5: Valuation of real estate 2 1 1.5 4.5
- Define market value
- Market comparison
2 1 1.5
- Cost
- Income approaches
6 Chapter 6: Risk analysis 2 1 1.5 4.5
- Sensitivity analysis
- Partitioning the IRR
2 1 1.5
- Lease risk
- Introduction to real option
Chapter 7: Financing project
7 2 1 1.5 4.5
development

2
 - Planning and permitting process
- Develoment of income producing
property
- Project development financing
2 1 1.5
- Lender requirements in financing
project development
- Project development illustrated
- Feasibility, profitability and risk
Chapter 8: Real estate investment
8 2 1 1.5 4.5
trusts (REITs)
- Concept, requirements, types of
REITs
- Financial analysis of REITs
- REIT growth and development
Chapter 9: Real estate investment
9
performance
- Real estate investment returns
- Risk, return and performance
measurement
- Potential for portfolio
diversification
Total 30 15 22.5 67.5

4.2. Schedule of Lectures

Provides timeline of course progress in terms of content, instruction, and assessment

Lecture Title (Students’ preparation) Assessment

Required Pre-reading
materials
Chapter 1: Overview of real estate Chapter 1 and chapter 2:
finance and investment textbook papes 2-39.
- Real estate investment: Basic legal
1
concepts
- Real estate financing: notes and
mortgages
Chapter 2: Real estate market and Chapter 9, papes 254-288
Commercial property leases
2 - Real estate markets
- The housing market
- Commercial property leases

3
 Chapter 2: Real estate market and Chapter 9, papes 254-288
Commercial property leases
3 - Real estate markets
- The housing market
- Commercial property leases
Chapter 3: Income property Chapter 11, papes 339-371
analysis
- Computing after tax cash flows
from operations for income producing
4 properties
- Computing after tax cash flows
from reversion for income producing
properties
- The Investments decision
Chapter 3: Income property Chapter 11, papes 339-371
analysis
- Computing after tax cash flows
from operations for income producing
5 properties
- Computing after tax cash flows
from reversion for income producing
properties
- The Investments decision
Chapter 4: Financing income Chapter 12, papes 381-408
producing properties
- Financial leverage
6
- Participation loans
- Accrual loans
- Convertible mortgages
Chapter 4: Financing income Chapter 12, papes, 381-408
producing properties
- Financial leverage
7
- Participation loans
- Accrual loans
- Convertible mortgages
Chapter 5: Valuation of real estate Chapter 10, papes 296-328
8 - Define market value
- Market comparison

4
 - Cost
- Income approaches
Chapter 5: Valuation of real estate Chapter 10, papes 296-328
- Define market value
9 - Market comparison
- Cost
- Income approaches
Chapter 6: Risk analysis Chapter 13, papes 418-443
- Sensitivity analysis
10 - Partitioning the IRR
- Lease risk
- Introduction to real option
Chapter 7: Financing project Chapter 16, papes 508-538
development
- Planning and permitting process
- Develoment of income producing
property
11
- Project development financing
- Lender requirements in financing
project development
- Project development illustrated
- Feasibility, profitability and risk
Chapter 7: Financing project Chapter 16, papes 508-538
development
- Planning and permitting process
- Develoment of income producing
property
12
- Project development financing
- Lender requirements in financing
project development
- Project development illustrated
- Feasibility, profitability and risk
Chapter 8: Real estate investment Chapter 21, papes 678-704
trusts (REITs)
13 - Concept, requirements, types of
REITs
- Financial analysis of REITs

5
 - REIT growth and development
Chapter 9: Real estate investment Chapter 22, papes 710-725
performance
- Real estate investment returns
14 - Risk, return and performance
measurement
- Potential for portfolio
diversification
Chapter 9: Real estate investment Chapter 22, papes 710-725
performance
- Real estate investment returns
15 - Risk, return and performance
measurement
- Potential for portfolio
diversification
4.3. Contribution to Course Learning Outcomes

CLO
Topic Content
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
1, 2, Chapter 1. Bank 1 1 1 1 1 1 1 1
3 Management
Chapter 2: 1 1 1 1 1 1 1 1 1
4, 5,
Corporate Finance
6, 7
and Bond Valuation
Chapter 3: Portfolio 1 1 1 1 1 1 1 1
8, 9,
Theory and
10,
Portfolio
11
Management
Chapter 4: 1 1 1 1 1 1 1 1 1 1 1
12, Derivative
13, Instruments,
14, Alternative
15 Investments and
Funds

5. READING MATERIALS
5.1. Text book
William B. Brueggeman, Jeffrey D. Fisher 2011, Real Estate Finance and Investments,
Fourtheenth Edition, McGraw-Hill Irwin.
5.2. Optional Readings
Articles in good journals and news
5.3. Websites and Link
www.bloomberg.com

6
 www.vneconomy.vn/realestate

6. COURSE ASSESSMENT
Assessment Rate Form of Assessment Time allowance
Class participation 10% Attendance + participation in During the course
class discussion
Mid-term assessment 30% Essay writing and presentation In the end of the
at class course
Final exam 60% Multiple choice 40’-45’

DEAN OF FACULTY HEAD OF DEPARTMENT