Course Overview
This course provides an introduction to the basics of financial analysis and its applications in real estate investment and mortgage financing. It will also provide a preview of the practical role that mortgages play in the real estate market. Concepts are introduced, applications demonstrated, then you are assigned sequential real-life, market-driven opportunities from which you can apply lending industry core standards of practice. With a specific focus on real property applications, the components covered will be:MS EXCEL to the introductory level and its application to the real estate finance calculations and the visual expression of those calculations;Time Value of Money calculations; How to approach a financial problem; Anticipating and managing cash flow problems; Mortgage yields, bonuses, and discounts; Mortgage financing in relation to return, investment and property pricing; Analysis of investment and re-investment; Introduction to Project financing; Introduction to MS Project.
Prerequisite(s)
- 50% in OPMT 1110
Credits
4.0
- Not offered this term
- This course is not offered this term. Notify me to receive email notifications when the course opens for registration next term.
Learning Outcomes
Upon successful completion, the student will be able to:
- Use MS EXCEL for both the calculation and visual expression of those calculations as applied to the real estate finance outcomes following herein.
- Calculate the interest, principal and loan balances for loans & mortgages.
- Calculate interest rate conversions required by different compounding terms of a loan.
- Calculate present value ratios, net present values and profitability factors of cash flows.
- Calculate interest rate buy-downs on mortgages.
- Apply discounted cash flow methods to analyze investment options.
- Calculate the market value of existing mortgages when compared to the current mortgage market.
- Compute bonus calculations to buy down a mortgage rate.
- Use a combination of techniques explored in the course to make sophisticated investment calculations.
- Compare changes in mortgage amortization and the impact of the effective interest rate and cost of investment and the outstanding balance at any point during the amortization period.
- Recommend appropriate steps based on new concepts and applications offered by lenders in a lending marketplace defined by accelerating rates of change.
Effective as of Spring/Summer 2010
Programs and courses are subject to change without notice. Find out more about BCIT course cancellations.