EL CAMINO COLLEGE COURSE OUTLINE: RE 21

I. COURSE DESCRIPTION:

Course Title and Number: Real Estate 21 (RE21)
Descriptive Title: Real Estate Investment
Discipline: Real Estate
Hours Lecture: 3
Course Units: 3
Grading Method: Letter
Associate Degree Credit
Transfer CSU - Effective Date: Prior to 7/92.
Recommended Preparation: Real Estate Principles (RE11) and Real Estate Finance (RE14A) .

Catalog Description:
This course introduces the student to the aspects of real estate investments. Real estate investment projects are evaluated to determine cash flow analysis and investment analysis of exchanges and installment sales. Principles of structuring multiple exchanges, financing and depreciation and tax basis are covered in this course.

NOTE: This course is approved by the California Department of Real Estate (DRE) for credit towards the required coursework for the California real estate broker examination. This course is approved for one of the two courses required for DRE salesperson license in addition to Real Estate Principles (RE11). (OREA # 95006)

II. COURSE OBJECTIVES AND METHODS OF EVALUATION

A. Course Objectives:
1. The student will complete a project to determine a cash flow analysis on whether to lease or to buy a property listing the advantages and disadvantages of each.
2. Each student will demonstrate the principles of investment analysis, including exchanges and installment sales by satisfactory achievement in preparation examinations.
3. Each student will demonstrate how to use a financial calculator (such as the Hewlett Packard (HP), Texas Instrument (TI), or Real Estate Master).

B. Methods of Evaluation:
1. Substantial writing assignments, including: written homework and term or other papers.
2. Objective examinations, including multiple choice and true/false and fill-in-the blanks.

III. OUTLINE OF SUBJECT MATTER

Introduction and guidelines to counseling
Future and present value
Financial calculator work groups
Financial calculator practice sets
Tax basis and depreciation
Amortization
Cash flow analysis
Return on investment
Taxation overview
Taxation as applied to real estate tax laws
Sale of property
Installment sale
Computation of the installment sale
Financing and the installment sale
Basic concepts of exchanging
Multiple exchange computation
Structuring the exchange

IV. READING AND WRITING ASSIGNMENTS

Three hours of work per week, including class time, are required for each unit of credit.

A. A representative example of an assignment.
The student will demonstrate how to solve problems using the financial calculator.

B. Two hours of work outside of class are required for each hour of lecture or equivalent.
Each student will be required to perform the following outside of regular class time:
1. Study.
2. Answer questions.
3. Required reading.
4. Written work.
5. Internet search.

V. COLLEGE LEVEL CRITICAL THINKING ASSIGNMENTS

1. The student will demonstrate the ability to complete a financial analysis of a property to determine cash flow.
2. The student will demonstrate the ability to write a report giving the financial analysis on a property.

VI. PLANNED INSTRUCTIONAL ACTIVITIES

This course is taught with handouts, note taking, writing, library and/or Internet search, and discussion between students and instructor.

VII. APPROPRIATE TEXT AND MATERIALS

Required:
Marketing Investment Real Estate - Finance/Taxation Technique, newest edition, Messner, Schrelby, Lymon, National Association of Realtors.
Realty Blue Book ,FINANCIAL TABLES, Robert DeHeer, Dearborn Publishing, Chicago

Other Required Materials:
Real Estate Project, Grogan, newest edition, El Camino Bookstore.
Computer search for property management related data, etc. (such as Internet, government agency or similar).

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