Real Estate

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Learning Goals/Objectives: 
  • The students will demonstrate an understanding in the various types of real estate investments and basic financial products.
Grouping of Students: 
  • Individual
Methods: 
  • Direct Instruction
  • Classroom Discussion
Activities: 

“Hook” – Distribution of amortization schedule
duplex/mortgage payments. Do not tell them what it is, just review how it works
and ask them if it is a good investment. Discuss how this would be a good
investment if it is a rental property. 10 minutes

a. Direct Instruction – 25 minutes

(Use information from the textbook for more detailed
information)

  • Direct Real Estate Investment
  • Land is a speculative investment,
    which can be harder to get a loan for, and pays only with capital gain.
  • Single family – talk the 1% rule
    and what happens when it is vacant
  • Duplex – Talk commercial versus
    residential loan. Discuss tax advantages.
  • Condo – Discuss what an HOA fee
    is, and how it hinders the possibility of generating positive cash flows on
    condominiums being used as rental properties.
  • Fourplex
  • Compare
    and contrast appreciation and depreciation

b. Classroom Discussion – 5 minutes

What is an advantage of a duplex over single family?

  • What is a disadvantage of real estate (least liquid of all
    investments, managing evictions)– 5 minutes

c. Homework distribution & review – 5 minutes

Materials: 
  • Spreadsheet of mortgage payments;
  • Copies of ‘Roth IRA Versus Traditional – Which is Better’
Assessment: 

20 Point Quiz (Following day)

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