425 Real Estate Finance II (30 Hours PDF)

Fulfill Texas Sales Apprentice Education (SAE) requirements with this introduction to real estate finance.

We'll start with a look at how the government influences real estate finance through agencies such as the Federal Reserve (the Fed) and the Department of Housing and Urban Development (HUD). We'll also examine how the forces of supply and demand in the real estate market affect and are affected by the primary lending market

Most real estate is purchased with borrowed money, though the methods of finance vary. Making real estate loans carries a certain amount of risk for lenders; for this reason, lenders must have a firm grasp of a borrower's financial qualifications.

In this course, you'll learn how lenders qualify loan applicants by considering their income, credit, debt, source of funds, and net worth. You'll also learn how they qualify the property the applicant wants to mortgage. We'll discuss the different methods of valuation in depth so that you'll feel confident and familiar with them when you meet them in the real world.

We'll discuss how title (abstract ownership rights to the property) is transferred to the buyer with a deed. You'll also discover the earnest money contract: terms, contingencies, and earnest money deposits.

Then, we'll turn the focus to closing. We'll examine the customary costs involved in a real estate transaction, how certain items are prorated between the buyer and the seller, and the requirements set forth by the Real Estate Settlement Procedures Act (RESPA).

This course also covers foreclosure. We'll consider what happens when a borrower is in default of the mortgage contract. You'll discover how lenders may help borrowers prevent foreclosure through forbearance, moratoriums, and recasting. You'll also learn how, when these techniques fail, the property is foreclosed and sold at auction so the creditors are repaid.

No real estate finance course would be complete without discussing the types of mortgages available. We'll look at the elements of conventional loans, both conforming and nonconforming, with a special look at FHA-insured and VA-guaranteed loans.

We'll also look at non-conventional loans like adjustable rate mortgages (ARMs), graduated payment mortgages, growth equity mortgages, and reverse annuity mortgages. You'll discover the advantages and disadvantages of each type of financing so that you can understand the decision-making process inherent in real estate finance.

Finally, we'll explore a financing topic important to real estate investment: Internal Revenue Code (IRC) Section 1031 exchanges, often called a 1031 exchange.

The course ends with a real-world practice lesson that brings together the concepts and material discussed throughout the entire course.

Note: The course itself is delivered via PDF, while the exam will need to be taken online.