COURSE TITLE:                                 RE 471: REAL ESTATE INVESTMENT ANALYSIS Spring 2005

NUMBER OF CREDITS:                    3

MEETING PLACE AND TIME:         Section 01:  MW 3:30 – 4:45, 202 Still

PROFESSOR NAME:                          Dr. Jerry Belloit

OFFICE NUMBER:                            336 Still

TELEPHONE NUMBER:                   393-2626

E-MAIL ADDRESS:                            belloit@clarion.edu

WEBSITE:                                           blackboard.clarion.edu

OFFICE HOURS:                               9:00-10:45 MW, 9:30-11:00 T and by appointment.  I am in the office much   more frequently than these hours.  However, because I have offices on both campuses, I may be on the other campus on my MW hours.  If I am not in my office during the posted hours, the secretary will know where I am and can place a call to me if I am on the other campus.


This course provides the background necessary to evaluate alternative income-producing real estate investments.  Real estate as an investment media will be analyzed in terms of financial and non-financial considerations.  The rate of return and inflation-hedge characteristics of real estate investing will be considered in light of risk, illiquidity, and federal income tax consequences. Prerequisite: RE 271 or instructor's permission.


Learning Objective

Assessed by:

  1. The student will be able to name and explain the various approaches to real estate investment decision making including the "popular" approaches, best fit, and single and multiple period valuation techniques.

Exams 1, 2, 3, and Final

  1. The student will be able to correctly characterize various elements of investment strategy.

Exams 1, 2, 3, and Final

  1. The student will be able to list and explain the advantages and disadvantages of the different ownership forms.

Exams 1, 2, 3, and Final

  1. The student will be able to describe reasons for urbanization and patterns of urban growth.

Exams 2, 3, and Final

  1. The student will be able to perform applied market analysis including projection of demand and supply.

Student Project

  1. The student will be able to indicate the steps in preliminary investment analysis.

Exams 1, 2, 3, and Final

  1. The student will be able to identify and calculate the various tax consequences of investing in a real property.

Exams 2, 3,  and Final

  1. The student will be able to solve various time value of money problems including present and future values of lump sums and annuities including discounted cash flow problems.

Class Project, Exams 1, 2, 3, and Final

  1. The student will be able to explain the techniques of successful negotiation.

Final Exam

  1. The student will be able to characterize each of the types of real estate investment properties and identify special issues for each type.

Final Exam

  1. The student will be able to identify various risks in real estate investment and be able to suggest optimal ways to minimize those risks.

Final Exam

  1. The student will be able to suggest various financing alternatives for a specific property and calculate the effective costs and the benefits of each alternative.

Student Project and Final Exam

  1. The student will be able to complete a cohort survivor population projection for an assigned county.

Student Project


Core Competency

Addressed/Assessed by:

Communications abilities

Demonstration feasibility study

Analytic skills

Homework, all exams, all projects

Ethical understanding and reasoning ability

Chapter 2, Homework, all exams, feasibility study

Use of information technology

Demonstration feasibility study

Reflective thinking skills

Demonstration feasibility study

REQUIRED TEXT AND MATERIALS:    Real Estate Investment, Phyrr, Cooper, et. al.  CALCULATOR: A financial calculator is also required for this course. The Hewlett-Packard 10B is strongly recommended. (Students should avoid a TI BAII or Radio Shack equivalent.)   Students not choosing the HP10B will be responsible for learning the operation of their calculator on their own.

COURSE PREREQUISITES:   Prerequisite or co-requisite:  RE 271

CLASS ACTIVITIES AND REQUIREMENTS:  Learning activities include class lectures, reading comprehension quizzes, skill quizzes, case problems, and a demonstration investment analysis requirement.  Please read the assigned chapter (except for day 1) before coming to class.  My lectures will assume you have read the material, and are familiar at least with terminology; this will eliminate obvious questions that are answered in the book, and allow us to learn the concepts.  Read the book first.  Investment analysis submission must be in Microsoft Word and submitted into the Blackboard’s Digital Drop box.  Students must clearly name the file with their name and clearly identify the particular component.  All drawings and photographs must be scanned and pasted into the Word document at the appropriate places.  Blackboard has a 8 meg size limit on papers.  If your project exceeds 8 meg, see me about how to compress your graphic images.  

All homework and exams will be submitted on the http://blackboard.clarion.edu site. 

     a.    You must login using your CNet username. (Use lower case letters for both the username and password.)   If you don't know it, click on the link to "Need Help Using Blackboard?" at the login page (http://blackboard.clarion.edu) for more information or check the People Finder link on the Clarion home page.   Everything to the left of the @ sign on your email address is your CNet username.

  1. You must use your 13 digit SSN/month/date of birth (no spaces or hyphens) as your initial password.  This is how you will login to your Webmail through the new iClarion portal also (http://portal.clarion.edu).
  2. You should change your password to something you will remember; do NOT to use your SSN/month/date of birth. It was only created to initially set up your account. To change your password, enter the course in Blackboard and click on the "Student Tools" button and "Personal Information".
  3. The email address used in Blackboard is your Clarion email address.  If you wish to forward your email, you must set it up in Webmail. [[Forwarding Email from Webmail to Another Email Account:
    1. Go to the Webmail (iClarion) portal (http://portal.clarion.edu)
    2. Login with CNet username and password
    3. Click on the EMAIL icon
    4. Click the OPTIONS tab
    5. Click on AUTO FORWARD and enter address
    6. Click OK]]
  4. To get into your course(s) you should click on the link to course(s) you are participating in, not the link under the announcements heading. There was a change in Blackboard 5.5 that if you click on the link in "My Announcements" (or left side listing), you will only be in the announcements, not the course. This only occurs when you first log in. If you get lost, you can click on the "My Institution" tab to get back.


Midterm Exams (10% each)



Final Exam


90%+= A

Feasibility Analysis


80-89% = B

Time-Value-of-Money Assignments


70-79% = C

Case Problems


60-69% = D

Cohort Survival Excel Project


below 60% = F

Class Attendance and Participation






All exams will be cumulative. No make up-exams will be given. For all exams you will be permitted to use one 8.5 X 11 paper with any notations that you wish such as class notes, prayers, inspirational messages, etc. Any personal schedule conflicts with the exams must be identified and reported to me by September 8 to see if there might be a way to resolve the conflict.  

GRADING RUBRIC:  The objective exams and homework assignments are graded by the percentage correct.  Each section of the appraisal project is weighted according to the outline on the web site.  Each section is graded independently.  Grades on the section will be graded as follows:  100% answers will contain no spelling or grammar errors, will use clear, concise, logical, sentences using a professional language style, will cover the topic thoroughly, and evidence critical evaluation of the material.  70% answers will contain few spelling or grammar errors, will cover the major points, 50% answers will contain few spelling or grammar errors but will lack some of the major points, and be written in a non-professional style.  If there is not attempt to address the topic, no credit will be given.  Assignments and submissions not submitted by 4:00 P.M on the day the assignment is due will be penalized by 5% for each day the assignment or submission is late.  100% grade will be given to those who have no unexcused absences, are in class before the class begins, are fully prepared for every class, make at least one constructive contribution to the class discussion per week.  Participation credit can also be earned by making at least one constructive contribution to the class discussion board.  The participation grade will be reduced by 20% for each unexcused absence.  The participation grade will be reduced by 5% for each week where the student has no contribution to the class discussion.








Introduction/The Nature and Scope of Real Estate Investment

3 - 29



Overview of the Investment Decision Process

30 - 53



Martin Luther King Holiday




Decision Making Approaches to Real Estate Investment

54 - 84



Decision Making Approaches to Real Estate Investment (Cont.)




Investment Strategy

85 - 124



Selecting the Ownership Entity

Time-Value-of-Money Project Due by 11:00 P.M.

125 - 169



Selecting the Ownership Entity (Cont.)




Preliminary Financial Feasibility

170 - 209



Preliminary Financial Feasibility (Cont.)




Case Problem 1 due by 11:00 P.M.  



Discounted Cash Flow and Ratio Analysis/Review Problem 1

210 - 246







Risk Analysis and Risk Management: Single Projects

247 - 273



Financing and Refinancing Decisions

274 - 321



Financing and Refinancing Decisions (Cont.)




Tax Planning and Detailed Financial Analysis

322 - 372


7, 9

No Class—Winter Break




Tax Planning (Continued)




Case Problem 2 due by 11:00 P.M.  



Review Problem 2








Urban Analysis

373 - 425



No Class—Spring Break




Marketability Analysis

Cohort Survival Model Due by 5:00 P.M.

425 - 447



Case Problem 3 due by 11:00 P.M.  



Review Problem 3








Property Selection Process
Shopping Centers

733 - 749
750 - 766
767 - 800



Office Buildings
Industrial Properties

801 - 825
826 - 854



Other Income Producing Properties
Land Investments

855 - 899
900 - 912



Inflation, Deflation, and Real Estate Cycles
The Art of Real Estate Negotiations

448 - 510
511 - 532



Termination of the Investment
Real Estate Portfolios
Final Project Due 
(Submitted in Digital Drop Box by 5:00 P.M.)

533 - 573
625 - 689







Final Exam at 2:00  

 ATTENDANCE AND ABSENTEEISM:  Class attendance is mandatory and strongly recommended. Missing class unnecessarily will result in one or more letter reductions on your final grade. In addition, if you are taking this course for pre-licensing education, missing class may prevent you from getting credit.

 CLASS PARTICIPATION:  Students are expected to attend every class, prepare for the lecture, and contribute to the discussion of relevant material. 

 MAKE-UP EXAM POLICY:  Normally no make up-exams will be given.  Any personal schedule conflicts with the exams must be identified and reported to me by January 19 to see if there might be a way to resolve the conflict.  In the event of schedule conflicts after January 19, you must notify the instructor as soon as possible.  The instructor will try to schedule the exam at an earlier date.  If no attempt is made to contact the instructor prior to a scheduled exam, the student ordinarily will receive no credit for the exam.  If a makeup is necessary due to extraordinary circumstances, the exam will be given on May 6th.

 ACADEMIC DISHONESTY:  Academic dishonesty will not be tolerated in this class. Cheating on examinations, inappropriate collaboration on projects, and other forms of dishonesty will be dealt with in a serious and formal manner. The minimum penalty for academic dishonesty in this class will be course failure.

SPECIAL SERVICES:   If you require special accommodation for taking exams or completing the project, you must notify the instructor by January 19th.  A learning contract will be completed accordingly.

Send mail to Dr. Jerry Belloit with questions or comments about this web site.
Copyright © 2006  Dr. Jerry D. Belloit