Category: f18-econ325

Final Exam Results

Results from the final exam are posted below.

All grades are in. I’d be happy to send you final scores via email.

Thanks for a great semester! Enjoy your break!

x̅=88.77, s=8.72

 

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Review for Final Exam

Review:

  • REITs
  • Student evaluations
  • Final Exam on Tue at 10:30a in HSB 110

Review Topics:

  • Real Estate purchase process
  • Mortgage Finance
    • Types of loans
  • Comparable Sales Analysis
  • How the housing bubble inflated
    • Federal Reserve Monetary Policy
    • Financial deregulation
  • How the housing bubble burst
    • Mortgage meltdown after “teaser” rates went away
    • Strategic defaults on mortgage loans
    • Neighborhood deterioration
  • Location, location, location
    • Market level analysis
    • Neighborhood level analysis
    • Parcel level analysis
  • Demographics and Real Estate
  • Economic Cycles
  • Commercial Real Estate Investment
  • Multifamily Residential
  • New Construction
  • Yield Curve, Recessions
  • Final Words
    • Please complete a student evaluation
    • You’ll always run out of money before you run out of good deals. [be patient]
    • You make money when you buy (if done correctly), not when you sell. [be disciplined when buying]
    • Creative solutions to people problems are central to generating real estate profits. [be flexible, find solutions]
    • Play Monopoly on the “big board” [some board game lessons translate to reality]
      • Location drives value over time
      • Learn to love being land rich, cash poor
      • Deal making is an exercise in giving people what they want and accepting what they’ll give
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Lesson 21: REITs

Review:

  • Student Evaluations and final exam
  • Spring Courses
    • BUSAD 360 Advanced Statistics (MW 11:15 and 1:00)
    • ECON 320 Geography of World Economy (TTh 11:15)

Presentation:

Assignment:

  • Work on Term Paper, Review of Guest Speakers
  • Study for Final
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Lesson 20: Using Real Estate to Build and Preserve Wealth in a Volatile World Economy

Review:

  • Taxes and Real Estate
  • Assignment:
    • Write a 2-page paper reviewing our guest speakers
      • Gary Miller and Casey Edwards
      • Joe O’Brien
      • Lee Meisner
      • Bob Root
    • What did you enjoy?
    • What did you learn?
    • Who taught you the most?
    • Who would you invite back?
    • Due Tue Dec 4 at 10:30a
  • Final Exam on Tue Dec 4 at 10:30a

Presentation:

  • Nature of wealth
  • Contracts
  • Physical Assets
  • Collateral
  • Inflation, deflation and volatility
  • Precious Metals
  • Bitcoin and other Cryto-currencies
    • Impact on existing monetary system
  • Future of the US Dollar as the World’s “Reserve Currency”
    • Fed, BoE, BoJ, ECB
    • ZIRP = Zero Interest Rate Policies
    • QE = Quantitative Easing (money printing)
    • BRICS = Brazil, Russia, India, China, South Africa
    • Currency wars
  • Advantages of Real Estate
    • Physical asset
    • Inflation hedge
    • Opportunity in an “inefficient” market
    • Enduring value
    • Relatively easy to insure
  • Disadvantages of Real Estate
    • Vulnerable to local market deterioration
    • Vulnerable to deflation
    • Vulnerable to natural hazards
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Lesson 16: The Yield Curve and Forecasting the Next Recession

Review:

  • Demographics
  • Boom Bust Cycles
  • New Construction
  • Guest speaker on Thursday:
    • Joe O’Brien on Land Development
    • Hosted by Sarah Mize

Presentation:

Discussion:

  • When will the next recession arrive?
  • Peter Schiff (the alarmist)
  • A. Gary Shilling (the realist)
  • How will it impact the Pueblo real estate market?
  • Could the student loan debt “bubble” implode and cause an economic crisis?

 

 

 

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Lesson 15: Demographics, Boom-Bust Cycles and New Construction

Review:

  • Gary Miller and Casey Edwards
    • Careers in Real Estate
      • Real Estate agency
      • Mortgage Companies
      • Title Companies
      • Builders/Contractors
    • Retirement with Real Estate investments
    • Inventory and Absorption Rate
    • National Association of Realtors Research and Statistics
    • Pueblo Association of Realtors Monthly Report

Presentation:

  • Demographics
  • Demographics in Commercial/Retail Site Selection
    • Customer Profile – age, gender, race, income, education
    • Target Marketing
    • Trade Area analysis
      • Sales by geography
      • Competitive analysis
    • Supportable Stores Analysis
    • Market Deployment Optimization
  • Harry Dent
    • Spending by age cohort
    • Housing preferences by age cohort
    • Economic forecasting using theories of cycles
    • Publishes/Promotes Sensationalism
  • Boom Bust Cycles in Real Estate
  • New Construction
    • US data
      • 1960
        • pop 180M
        • starts 1.25M
        • rate 7.0 per thousand
      • 1990
        • pop 250M
        • starts 1.19M
        • rate 4.8 per thousand
      • 2010
        • pop 309M
        • starts 587k
        • rate 1.9 per thousand
    • Pueblo data
      • 1990
        • pop 123k
        • starts 191
        • rate 1.55 per thousand
      • 2010
        • pop 160k
        • starts 213
        • rate 1.33 per thousand

 

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