INTRODUCTION

This Instructor's Manual is designed to assist those who use California Real Estate Finance, 4th Edition, as a classroom textbook by defining the learning objectives set by the authors, as well as by providing useful materials and suggestions for achieving these objectives.

It is important at the outset to recognize that education in real estate is multi-leveled. It is taught to graduate students as well as baccalaureate candidates, junior and community college students, and to real estate practitioners. Also, the instructors who present this material will have various educational backgrounds and business experiences.

Therefore, the authors do not presume that their ways of presenting the information is the only way or even the best way to achieve student learning objectives, but rather a carefully formulated plan. Thus, with every measure of professional cooperation and with sincere intentions that it will enhance and complement teaching styles, this manual is dedicated to those who wear the academic's mantle when presenting this material.

The text will provide students with the information on the basic financial structure of real estate necessary to appreciate the complex interrelationships and responsibilities inherent in the field. By encouraging class participation, the instructor will prepare students to use their academic knowledge in solving their daily professional problems.

The instructor's approach should allow for discussions of actual cases, handout materials, audio-visual aids, and the appearance of guest lecturers well versed in a particular aspect of real estate finance, such as loan underwriting, appraising and foreclosures, to name only a few.

This manual includes information on each of the fifteen chapters found in the text (summary, learning objectives and outline), offering ten quiz questions for each chapter, one 100-question midterm examination and two 100-question finals.

We thank you for choosing our text, and we wish you much pleasure in its use. If you have any desire to communicate with us directly, please address your inquiries to Minnie Lush, 4105 W. Magnolia Blvd., Burbank, CA 91505, (818) 771-7199 or David Sirota, 564 Corpino de Pecho, Green Valley, AZ 85614, (602) 625-6417.

The Authors

LESSON ASSIGNMENTS

Preface ix

1 / Nature and Cycle of California Real Estate Finance 1-26

2 / Money and the Monetary System 27-56

Where do we get the money?

3 / Fiduciary Sources for Real Estate Finance 57-79

4 / Semifiduciary and Nonfiduciary Sources for Real Estate Finance 81-114

5 / Conventional, Insured and Guaranteed Loans 115-151

6 / Federal and State Financial Regulations and Lending Programs 153-186

7 / Junior Real Estate Finance 189-204

8 / Contemporary Real Estate Finance 205-247

9 / Instruments of Real Estate Finance 249-287

10 / Real Estate Loan Underwriting 288-317

11 / Processing Real Estate Loans 320-339

12 / The Secondary Mortgage and Trust Deed Markets 340-361

13 / Defaults and Foreclosures 362-387

14 / Investment Financing Strategies 388-409

15 / Mathematics of Real Estate Finance 410-449