I will hand out class notes at the beginning of each class. All notes will be posted to Blackboard the day of the class.

Fall 2012: RE 3381 Real Estate Fundamentals Introduction to Real Estate Markets and Valuation Module 4382 Lecturer: Chuck Dannis Office Hours: By appointment at SMU most any time and before or after class - or By appointment - anytime Crosson Dannis, Inc. (www.crossondannis.com) 6060 North Central Expressway, Suite 860 Dallas, Texas 75206 214/932-1818 (voice mail) Mobile: 214/707-1851 (voice mail) Home: 214/340-9124 (message) Fax: 214/361-2632 E-Mail: cdannis@crossondannis.com (do not use SMU email) Text: Class Notes: None required for this module. Approximately 100 pages of text material from the 13 th Edition of The Appraisal of Real Estate (Appraisal Institute: Chicago, IL; 2008) will be handed out the first day of class (copied with the permission of the Appraisal Institute. This is the textbook used in RE 4382.) I will hand out class notes at the beginning of each class. All notes will be posted to Blackboard the day of the class. Quizzes/Test: Evaluations: Student Learning/ Outcome Objectives: I will give approximately 5 pop tests that will cover the reading material assigned for that class. I will use these quizzes to take roll as well. These quizzes will represent 10% of your total grade in my module. You will have one final test at the end of my module (90% of my module grade.) Each module represents 1/3 of your total grade for the class. Course evaluations will be administered at the beginning of class ON BLACKBOARD. (Date TBD) Students will be given 10 MINUTES to complete the evaluation online (you will need your computer). This module will introduce the student to the business of real estate: basic property types in commercial real estate will be discussed. The students will gain a general understanding of the demand for real estate, how it is valued and potential investment criteria. Syllabus-Fall 2012 3381-1

RE 3381 Fall 2012 Page 2 Disability Accommodations: Excused Absences for University Extracurricular Activities: Religious Observance: Disability Accommodations: Students needing academic accommodations for a disability must first be registered with Disability Accommodations & Success Strategies (DASS) to verify the disability and to establish eligibility for accommodations. Students may call 214-768-1470 or visit http://www.smu.edu/alec/dass to begin the process. Once registered, students should then schedule an appointment with the professor to make appropriate arrangements. See DASS attachment. Excused Absences for University Extracurricular Activities: Students participating in an officially sanctioned, scheduled University extracurricular activity should be given the opportunity to make up class assignments or other graded assignments missed as a result of their participation. It is the responsibility of the student to make arrangements with the instructor prior to any missed scheduled examination or other missed assignment for making up the work. (University Undergraduate Catalogue) Religiously observant students wishing to be absent on holidays that require missing class should notify their professors in writing at the beginning of the semester, and should discuss with them, in advance, acceptable ways of making up any work missed because of the absence. (See University Policy No. 1.9.) Syllabus-Fall 2012 3381-2

RE 3381 Fall 2012 Page 3 Class 1: August 20, 2012 Class Overview and Introduction : Lynch, Beasley and Dannis Reading Material Assigned; Chapters 1 and 2: Excerpts from The Appraisal of Real Estate" Handout Class 2: August 22, 2012 Lecture: A. Brief examination of the real estate market B. Historical perspective of real estate appraisal C. The Appraisal Process Reading Material Assigned; Finish Chapters 1 and 2: from The Appraisal of Real Estate" Handout Excerpts Class 3: August 27, 2012 Lecture: A. Four main groups in real estate and their subsets B. Value definitions and concepts C. Neighborhoods and market areas Reading Material Assigned; Chapters 10 & 12: Excerpts from The Appraisal of Real Estate Handout Class 4: Lecture: Class 5: August 29, 2012 Real Estate Market and Property Analyses A. Concepts of Land 1. Economic Concepts 2. Physical Concepts B. Improvements to Land C. Highest and Best Use Reading Material Assigned: Chapter 13: Excerpts from The Appraisal of Real Estate Handout September 3, 2012 Labor Day! No Class! School Holiday! Syllabus-Fall 2012 3381-3

RE 3381 Fall 2012 Page 4 Class 6: Lecture: September 5, 2012 Sales Comparison Approach A. Concept B. Strengths and Weaknesses C. Process/Examples Reading Material Assigned; Chapters 16 & 17: Excerpts from The Appraisal of Real Estate Handout Class 7: Lecture: September 10, 2012 Cost Approach A. Concept B. Strengths and Weaknesses C. Process/Examples Reading Material Assigned; Chapter 20: Excerpts from The Appraisal of Real Estate Handout and Market Analysis in the Appraisal Process (follows Chapter 20 in handout) Class 8: Lecture: September 12, 2012 Income Capitalization Approach A. Concept B. Strengths and Weaknesses C. Process/Examples Class 9: September 17, 2012 Lecture: A. Investing and Making Money in Real Estate: Is it really that easy? B. Credit Scores: Importance to you C. The real estate economy is there a place or a job for you? Class 10: September 19, 2012 Module Exam Review! Class 11: September 24, 2012 Module Exam! Syllabus-Fall 2012 3381-4

RE 3381 Finance Module Course Outline fall 20122 1 fall 2012: RE 3381 Real Estate Fundamentals Introduction to Real Estate Finance CROW 279 4382 Adjunct Lecturer: Office Hours: Julie Brand Lynch By appointment t at SMU most any time before or after class LYNOUS Talent Management 6860 N. Dallas Parkway; Ste. 200 Plano, Texas 75024 Office: 214.387.9595 Mobile: 972.786.3235 Fax: 214.975.1462 E-Mail: Julie@ @LYNOUS.com (www.lynous.com) Website Reference: http://faculty.cox.smu.edu RE 3381 Class fall 2012 3:30 p.m. 4:50 p.m. Learning Outcomes: Learn the contributing causes of the 2008 Financial Crisis in the United States thru research and authoring a paper Student will be able to calculate compound interest and understand financial tables for the process of compounding, discounting and finding internal rates of return by using interest factors. Learn approaches to pricing and structuring fixed interest rate mortgage loans. Understand determinants of house prices and appraisal procedures used for residential mortgage lending. Learn the underwriting processs and closing of residentiall properties. Course will cover and students will learn the necessary accounting between the borrower, lender, seller and other parties to a transaction. Students will be introduced and learn sound investment decisions for income producing properties with consideration given to market supply & demand, and economic considerations. Textbook: Real Estate Finance and Investments, 14 thh ed., by Brueggeman and Fisher (BF) publishedd by McGraw Hill-Irwin Co., 2011. a. If you are a Real Estate Finance major you shouldd acquire a copy of the book because it will be used again in RE 4389. If you obtain a used copy, be sure that it is the 14 th edition. b. For non-majors who do not wish to purchase a book, there are copies on reserve in the BIC. Calculator: For RE3381 finance module, the HP12c calculator will be used. There is an iphone application for the HP12C for approximately $4.00. Thiss application can t be used during the exam. The calculator can be purchased from most office supplyy stores and Amazon. During the course, the classroom exercises, homework solutions and supplemental referencee materials will all be using the HP12c.

RE 3381 Finance Module Course Outline fall 2012 2 Software: A website reference www.mhhe.com/bf14e has been included with the 14 th edition of your textbook. It contains EXCEL spreadsheets/templates and may be useful for many of the homework assignments this part of the class. Website: Information on assignments/changes, important terms that you should know from reading assignments, check figures for homework and various messages from me will be posted on the Blackboard (BB) website. Go to: http://smu.edu/cms/. (Use your same User ID.and Password as ACCESS.). The textbook supplement website: www.mhhe.com/bf14e or www.mhhe.com/business/finance/realestonline also includes Real Estate Outline. This contains supplementary material including quiz questions, etc. You may find this site useful as you study during the course. Supplements: Hard copies of any course handouts, etc. will be provided to you at no charge courtesy of the Real Estate Department or you can obtain the information off of Blackboard. Too Big Too Fail DVD on reserve in the BIC. Homework: Students are responsible for completing the assigned chapter problems. Chapter problems do not need to be handed in, only the on-line chapter quizzes. The solutions sets for the problems will be distributed for each chapter assigned the following class. Certain problems and solutions will be worked during the class to help students. Honor Code Policy: If it is determined that a student has cheated on any work submitted for academic credit, a grade of zero will be given for that assignment, quiz, or exam. If the student feels wrongly accused, he/she has the option of appealing that decision to the Honor Council. I will abide by the decision of the Honor Council. If the Honor Council also finds the student guilty of cheating and recommends that the student receive a "HV" for the course, I will follow the Honor Council's recommendation. An "HV" carries the weight of an "F" and will remain on the student's transcript for three years after graduation.

RE 3381 Finance Module Course Outline fall 2012 3 Grading Policy: Finance Chapter On-line Quizzes 20% Group paper 2008 Financial Crisis 25% Individual Acquisition Assignment 25% Finance Module Examination 30% Finance Module Final Grade equals 33% entire RE3381 grade A 94-100 B+ 86-89 B- 80 82 C 72 75 D 60-69 A- 90-93 B 82-85 C+ 76-79 C- 70 72 Don t 0-59 Attendance is MANDATORY This provides students with a reminder not only of the policies themselves, but also of how to access the services and accommodations available. Disability Accommodations: Students needing academic accommodations for a disability must first be registered with Disability Accommodations & Success Strategies (DASS) to verify the disability and to establish eligibility for accommodations. Students may call 214-768-1470 or visit http://www.smu.edu/alec/dass.asp to begin the process. Once registered, students should then schedule an appointment with the professor to make appropriate arrangements. (See University Policy No. 2.4; an attachment describes the DASS procedures and relocated office.) Religious Observance: Religiously observant students wishing to be absent on holidays that require missing class should notify their professors in writing at the beginning of the semester, and should discuss with them, in advance, acceptable ways of making up any work missed because of the absence. (See University Policy No. 1.9.) Excused Absences for University Extracurricular Activities: Students participating in an officially sanctioned, scheduled University extracurricular activity should be given the opportunity to make up class assignments or other graded assignments missed as a result of their participation. It is the responsibility of the student to make arrangements with the instructor prior to any missed scheduled examination or other missed assignment for making up the work. (University Undergraduate Catalogue)

RE 3381 Finance Module Course Outline fall 2012 4 Class 1: Wednesday September 26, 2012 Class Overview and Introduction : Lecture: A. Introduction and purpose Finance Module B. Brief examination of the real estate asset class types C. Begin discussion of Chapter 3 Reading Material Assigned; Chapter 3: Study Key Terms and have a thorough understanding. Complete Chapter 3 Quiz at www.mhhe.com/bf14e Print out results and turn in next class. Bring calculator to next class. Class 2: Monday October 1, 2012 Lecture: A. Chapter 3 The Interest Factor in Financing B. Financing Calculator workshop Homework problems Chapter 3: 1, 2, 4, 5 and 13. Reading Material Assigned; Chapter 4. Complete Chapter 4 Quiz at www.mhhe.com/bf14e Print out results and turn in next class. Bring calculator to next class. Class 3: Wednesday October 3, 2012 Lecture: A. Discussion on Chapter 4 B. Mortgage Application Process & Underwriting Homework problems: Chapter 4-2, 5, 7, 8, 9, 10, 13. Class 4: Monday October 8, 2012 Lecture: A. Discussion Chapter 5 B. Classroom Exercise Reading Materials Assigned: Chapter 5 and do problem 2. Complete Chapter 5 Quiz at www.mhhe.com/bf14e Print out results and turn in next class.

RE 3381 Finance Module Course Outline fall 2012 5 Class 5: Wednesday October 10, 2012 Lecture: A. Discussion Chapter 7 B. Classroom Exercise Reading Materials Assigned: Chapter 7 Homework problems: Chapter 7 problem 2 a & b Complete Chapter 7 Quizzes at www.mhhe.com/bf14e Print out results and turn in next class. FALL BREAK October 15 th & October 17 th Class Cancelled Class 6: Monday, October 22, 2012 Lecture: A. Discussion Chapter 8 B. Classroom Exercise Reading Material Assigned: Read Chapter 8 Homework problems: Chapter 8 problems 1 and 3 (use template on BlackBoard) Complete Chapter 8 Quiz at www.mhhe.com/bf14e Print out results and turn in next class. Class 7: Wednesday, October 24, 2012 A. Discussion Chapter 9 B. Introduction to Income Producing Properties Reading Material Assigned: Chapter 9 Class 8: Lecture: Wednesday, October 24, 2012 INDIVIDUAL PROJECT AND GROUP PAPER DUE A. Introduction to Investment Analysis and Taxation of Income Properties B. Perform Chapter 11 problem 11-2 together C. Module Exam Review BRING LAPTOP TO CLASS TO COMPLETE COURSE EVALUATION Homework: Read Chapter 11 Class 9: Monday, October 29, 2012 - Module Exam Lecture:

RE 3381 REAL ESTATE FUNDAMENTALS Fall, 2012 REAL ESTATE LAW MODULE Instructor: Place: Law Module: Exam for module: Office hours: Office Address: Paula L. Beasley, Attorney at Law; J.D., Southern Methodist University; B.A., Louisiana Tech University Room 279, Crow Building, Edwin L. Cox School of Business, SMU Fall 2012, Mondays and Wednesdays, 3:30-4:50 p.m., beginning Wednesday, October 31, 2012 through December 3, 2012 December 12, 2012, 3:00 6:00 p.m. Exam over Real Estate Law Module only I am available to visit with you typically between 9:30 a.m. to 6:00 p.m. by email, telephone, or in person. Feel free to call me or email me between these hours at my office or on my cell phone. Scheef & Stone, L.L.P. 500 N. Akard Street, Suite 2700 Dallas, Texas 75201 Office Phone: 214.706.4235 Mobile Phone: 214.803.4804 E-mail: Websites: Text: Handouts: paula.beasley@solidcounsel.com (use this instead of my SMU email) www.solidcounsel.com; www.scheefandstone.com Real Estate Finance and Investments, 14 th ed., by Brueggeman and Fisher (BF) published by MGraw Hill-Irwin Co., 2011 Will be distributed in class and/or posted on Blackboard. Date Instructor Topic/Reading Assignment Oct 31 (W) Beasley Introduction to course; Property, Deeds and Title; Reading assignment: Real Estate Finance & Investments, Chapter 1, pages 1-15, and handouts Nov 5 (M) Beasley Financing Transactions in Real Estate; Reading assignment: Real Estate Finance & Investments, Chapter 2, pages 16-26, and handouts - 1 -

Nov 7 (W) Beasley Breach of Contract, Default and Remedies; Reading assignment: Real Estate Finance & Investments, Chapter 2, pages 26-31. Nov 12 (M) Beasley Foreclosure; Reading assignment: Real Estate Finance & Investments, Chapter 2, pages 31-36, and handouts Nov 14 (W) Beasley Leases; Reading assignment: Real Estate Finance & Investments, Chapter 9, pages 262-263, 266-273, 280, 287, 290, and handout Nov 19 (M) Beasley Brokerage and Agency; Reading assignment: Handouts Nov 26 (M) Beasley Contracts; Reading assignment: Real Estate Finance & Investments, Chapter 9, pages 254-256 and handouts Nov 28 (W) Beasley Closings; Reading assignment: Real Estate Finance & Investments, Chapter 8, pages 239-251; Dec 3 (M) Beasley REVIEW Class Evaluations (bring laptop computers) Dec 12 (W) Beasley 3:00 6:00 p.m. EXAM over 3 rd Module Real Estate Law only GRADING POLICY: Most, if not all of the questions on my exam and quizzes will be objective in nature, calling for a single correct answer, with the typical format being fill-in-the-blank, true/false, or definitions calling for the word being defined to be provided. Open books and notes will not be allowed for the exam or any quizzes. Any cheating will automatically result in a failing grade for the exam or quiz. On my exam there will usually be more objective questions asked than you are required to answer, so before your exam is handed in and graded, you will be able to select which of the objective questions will be counted toward your grade. Your grade will be based upon an average of the quizzes given and the exam. The quizzes will count for ¼ of the grade and the exam will count for ¾ of the grade. Exam and Quiz Policy: All exams are closed book and class notes are not allowed as a reference. Make up quizzes and exams are not allowed. If you are going to be absent for a quiz or the exam, you must notify me well in advance of the quiz or exam and accommodations will be made at my discretion. Attendance: I will take attendance at each class and reserve the right to provide extra credit for attendance. Possible Quizzes: I reserve the right to give quizzes during the semester. These quizzes are likely to occur and will be given if I deem them necessary to improve class participation and/or to enhance understanding of certain subject matter. - 2 -

Learning Outcomes: - Students will understand the various forms of real estate ownership and interests; - Students will learn the basics of financing real estate acquisitions, specifically real estate lien notes and deeds of trust; - Students will learn the basic provisions of a real estate contract for the sale or purchase of property and the remedies for breach/default of such a contract; - Negotiation of a real estate contract, the diligence process and closing the transaction will be covered; - Post-default foreclosure of real estate will be covered so that students will understand the process and results of a foreclosure; - Leases will be covered so that students will understand base lease provisions and their purpose; and - Agency and brokerage will be covered so that these principles are understood and can be applied. Honor Code Policy: If it is determined that a student has cheated on any work submitted for academic credit, a grade of zero will be given for that assignment, quiz, or exam. If the student feels wrongly accused, he/she has the option of appealing that decision to the Honor Council. I will abide by the decision of the Honor Council. If the Honor Council also finds the student guilty of cheating and recommends that the student receive a HV for the course, I will follow the Honor Council s recommendation. An HV carries the weight of an F and will remain on the student s transcript for three years after graduation. Disability Accommodations: A disability must first be registered with Disability Accommodations & Success Strategies (DASS) to verify the disability and to establish eligibility for accommodations. Students may call 214-768-1470 or visit http://www.smu.edu/alec/dass.asp to begin the process. Once registered, students should then schedule an appointment with the professor to make appropriate arrangements. (See University Policy No. 2.4; an attachment describes the DASS procedures and relocated office.) Religious Observance: Religiously observant students wishing to be absent on holidays that require missing class should notify their professors in writing at the beginning of the semester, and should discuss with them, in advance, acceptable ways of making up any work missed because of the absence. (See University Policy No. 1.9.) Excused absences for University Extracurricular Activities: Excused Absences for University Extracurricular Activities: Students participating in an officially sanctioned, scheduled University extracurricular activity should be given the opportunity to make up class assignments or other graded assignments missed as a result of their participation. It is the responsibility of the student to make arrangements with the instructor prior to any missed scheduled examination or other missed assignment for making up the work. (University Undergraduate Catalogue) Any further questions about these policies should be addressed to Professor Tom Tunks (214-768-3454) - 3 -