REAL 4000H: REAL ESTATE PRINCIPLES

Real Estate Principles

Fall 2022
Tuesday/Thursday 2:20 to 3:35 pm (MLC 153)

Dr. Richard W. Martin

A426 Moore-Rooker Hall
706-542-3585 (office)
rmart@uga.edu
Office Hours:
Mondays: 2 to 3 pm
Wednesdays: 11:30 am to 12:30 pm
By appointment

Course Information:
REAL 4000 Real Estate Principles
Course Description: The basic principles and analytical techniques related to the study of real estate - its
practices, institutions, and participants. Topics focus on issues related to property rights,
urban economics, market analysis, and brokerage, with an emphasis on decisions related
to investment, asset management, and debt financing.
Prerequisites: None

Course Description:
Real estate law, markets, valuation, and finance. Designed for non-real estate majors as well as to provide a basis
for more advanced real estate courses.

This course covers the fundamentals of real estate including investments, finance, law, and valuation. Special
consideration is given to understanding the role of real estate within the economy and its importance to non-real
estate firms. This is an interdisciplinary course designed to provide every student with an introduction to the field of
real estate and to provide a basis for more advanced real estate courses to those students who wish to take additional
real estate courses.

Course Objectives:
1. Acquaint the student with basic concepts applied in the field of real estate.

2. Acquaint the student with the principles necessary for an understanding of the real estate industry.

3. Acquaint the student with the basic analytical techniques used in the field of real estate.

Course Delivery and Instructional Method

This course will be completely face-to-face. The primary method for content delivery will be lecture/discussion. The
instructor will work with students who are required to quarantine/isolate due to COVID-19 to provide reasonable
accommodations as needed.

Course Materials:
Primary text: Real Estate Principles: A Value Approach, Ling and Archer, 6th
edition, McGraw-Hill/Irwin, 2021.

Additional Course Materials: Chapters 3 and 19 of Kau and Sirmans, Real Estate, available as a Bel-
Jean course packet.

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Financial Calculators: Students are required to have a financial calculator.

If you are purchasing a financial calculator or already have one, be sure that it can
calculate internal rates of return and amortization. It is possible to obtain an adequate model, such as the
TI-BA II Plus, for around $30. Note that it is your responsibility to learn how to use your own calculator. I
will be able to assist you with your calculator questions if you bring your calculator and manual to my
office during office hours. If you have a calculator that enables you to store characters, you will be asked
to clear the calculator’s memory before each test.

The TI-BA II Plus is relatively inexpensive, easy to use, will be used in class examples, and will make the
calculations required in the class less tedious.

Course Requirements

Dates Weight
Tuesday September 13th
Tests Thursday October 6th 80%
Tuesday November 1st
Tuesday November 29th
Optional Comprehensive Final Can replace lowest
Thursday December 13th
Exam test score
3:30 to 6:30 pm
Tuesday September 27th
Individual Project
Thursday October 20th
Tuesday November 15th 20%

The tests will be given in-class during our regularly scheduled class time. The test will consist of multiple-choice
questions, short answer questions, and problems. If you have an excused absence from one of the tests, the weight of
the excused test will be moved to the final. This means that the final exam will no longer be optional and that your
score on the final exam will count as your score on the excused test. Unexcused absences from tests will result in a
score of 0.

The optional comprehensive final exam will be given during our scheduled time slot during Finals Week. Like the
tests, the final exam will consist of a variety of question types. Your score on the final exam can be used to replace
your lowest test score. If your score on the final exam is lower than your lowest test score then the final exam score
will not count.

The final component of your grade will be an individual project in which you select and analyze a property as a
potential real estate investment opportunity. There will be three project assignments. The first assignment will
involve the selection of a property and an analysis of the legal characteristics of the property. The second
assignment will involve a market analysis for the property. The final assignment will involve an analysis of the
investment potential for the property. Later handouts will provide the details of each of the three assignments.

Course Policies
Grading System
I will begin the semester using the following scale to determine grades. During the course of the semester, the
boundaries may be lowered to ensure that the final distribution of grades is fair but the boundaries will never be
raised.

91 up to 100 A
90 up to 91 A-
89 up to 90 B+
81 up to 89 B
80 up to 81 B-
79 up to 80 C+

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71 up to 79 C
70 up to 71 C-
60 up to 70 D
Below 60 F

Course Website
This course is hosted on ELC. To access the website for the course go to elc.uga.edu and log in using your MyID
username and password. Choose the course from the list of classes under the heading “My Courses”. If you run
into any problems logging in, please come and see me at the beginning or at the end of the next class.

I will use ELC to post all of the materials that you will need for each class. The problem sets will also be assigned
and submitted using ELC Assignment Dropbox function.

Special Needs
Any student who feels that he or she may need an accommodation for any sort of disability should consult with me
so that arrangements can be made.

Academic Honesty
As a University of Georgia students, you have agreed to abide by the University’s academic honesty policy, “A
Culture of Honesty,” and the Student Honor Code. All academic work must meet the standards described in “A
Culture of Honesty” found at: www.uga.edu/honesty. Lack of knowledge of the academic honesty policy is not a
reasonable explanation for a violation. Questions related to course assignments and the academic honesty policy
should be directed to the instructor.

Mental Health and Wellness Resources:

If you or someone you know needs assistance, you are encouraged to contact Student Care and Outreach in the
Division of Student Affairs at 706-542-7774 or visit https://sco.uga.edu. They will help you navigate any difficult
circumstances you may be facing by connecting you with the appropriate resources or services.
UGA has several resources for a student seeking mental health services
(https://www.uhs.uga.edu/bewelluga/bewelluga) or crisis support (https://www.uhs.uga.edu/info/emergencies).
If you need help managing stress anxiety, relationships, etc., please visit BeWellUGA
(https://www.uhs.uga.edu/bewelluga/bewelluga) for a list of FREE workshops, classes, mentoring, and health
coaching led by licensed clinicians and health educators in the University Health Center.
Additional resources can be accessed through the UGA App.

COVID-19 Statement
Please adhere to all University System of Georgia and UGA COVID-related policies, especially when attending our
face-to-face class sessions.

As a University of Georgia student, you have agreed to abide by the University’s academic honesty policy, “A
Culture of Honesty,” and the Student Honor Code. All academic work must meet the standard described in “A
Culture of Honesty” found at www.uga.edu/honesty. Lack of knowledge of the academic honesty policy is not a
reasonable explanation for a violation. Questions related to course assignments and the academic honesty policy
should be directed to the instructor.

Terry College Statement on Diversity:

The Terry College is committed to promoting diversity, equity, inclusion, and belonging among its students, faculty,
and staff. This class welcomes the open exchange of ideas and values freedom of thought and expression. This class
provides a professional environment that recognizes the inherent worth of every person. It aims to foster dignity,
understanding, and mutual respect among all individuals in the class.

Note: The course syllabus is a general plan for the course; deviations announced to the class by the instructor
may be necessary.

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 Per University Requirements

Course title and number as they appear on the course application:

REAL 4000 Real Estate

Course description as it appears on the course application:

Real estate law, markets, valuation, and finance. Designed for non-real estate majors as well as a basis for more
advanced courses.

Prerequisites, corequisites, and cross-listings for the course:

None

Course objectives or expected learning outcomes for students of the course:

1. Acquaint the student with basic concepts applied in the field of real estate.
2. Acquaint the student with the principles necessary for an understanding of the real estate industry.
3. Acquaint the student with the basic analytical techniques used in the field of real estate.

Topic outline for the course:

1. Introduction to Real Estate
2. Real Estate Markets
3. Legal Concepts in Real Estate
4. Real Estate Financial Analysis
5. Real Estate Finance
6. Real Estate Investment Analysis
7. Real Estate Valuation
8. Real Estate Transactions
9. Real Estate Development

Note: The course syllabus is a general plan for the course; deviations announced to the class by the instructor
may be necessary.

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 Real 4000H
Fall 2022
Topical Schedule

Introduction to the Course

Reading: None
Assignments: None
Introduction to Real Estate
Reading: Chapter 1 of the textbook
Assignments: None
Legal Determinants of Value
Reading: Chapter 2 of the textbook
Assignments: None
Deeds and Property Descriptions
Reading: Chapter 3 of the textbook
Assignments: None
Government Regulation of Real Estate
Reading: Chapter 4 of the textbook
Assignments: None
Time Value of Money Basics
Reading: Bel-Jean packet Chapter #1, Chapter 14 of the textbook
Assignments: Time Value of Money Problem Set
Note: You will need your financial calculator for this class.
Market Determinants of Value
Reading: Chapter 5 of the textbook
Assignment: Economic Base Problem Set
Sales Comparison and Cost Approaches to Valuation
Reading: Chapter 7 of the textbook
Assignment: None
Income Approach to Valuation
Reading: Chapter 8 of the textbook
Assignment: Income Approach to Valuation Problem Set
Note: You will need your financial calculator for this class.
Mortgages: The Legal Dimension
Reading: Chapter 9 of the textbook
Assignment: None
Mortgage Mechanics
Reading: Bel-Jean packet Chapter 2, Chapter 15 of the textbook
Assignment: Mortgage Mechanics Problem Set
Note: You will need your financial calculator for this class.
Residential Mortgage Types
Reading: Chapter 10 of the textbook
Assignments: None
Sources of Funds for Residential Mortgages
Reading: Chapter 11 of the textbook
Assignment: None

The Subprime Mortgage Crisis

Listening: “Giant Pool of Money” from This American Life
Assignment: None

Real Estate Investment Analysis: Ratios

Reading: Chapter 18 of the textbook
Assignment: None

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Real Estate Investment Analysis: NPV and IRR
Reading: Chapters 19 and 20 of the textbook
Assignment: Real Estate Investment Analysis Problem Set
Note: You will need your financial calculator for this class.

Real Estate Brokerage and Listing Contracts, Contracts for Sale and Closing
Reading: Chapters 12 and 13 of the textbook
Assignment: None
Leases
Reading: Chapter 22 of the textbook
Assignment: None