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Foreclosure Session #1 - Thursday November 13, 2025

 FORECLOSURE PROCESS  1. Big picture: Georgia is a power-of-sale (nonjudicial) state When you get a mortgage in Georgia, you actually sign a promissory note plus a security deed that usually contains a “power of sale” clause. That clause lets the lender sell the property at a foreclosure auction if you default, without first going to court, so long as they follow Georgia’s notice and advertising laws.   Judicial foreclosure (going through a lawsuit) is possible, but it’s rare in Georgia for residential loans; lenders overwhelmingly use the nonjudicial route. 2. Step-by-step: Nonjudicial foreclosure in Georgia Step 1 – Default under the loan a)  A default usually begins with missed payments or violation of some other loan term (failure to pay taxes, keep insurance, etc.). b)  F ederal mortgage rules (on most owner-occupied residential loans) generally prevent a lender from starting foreclosure until you’re more than 120 days delinquent, but after that, Georgia’s ...
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Class 12: Comparable Sales & Regression Analysis Building comparable sets and regression models

  OCTOBER 28, 2025 Class 17: Comparable Sales & Regression Analysis Building comparable sets and regression models.  Example: Regression predicts $/SF from lot size and year built.   Potential SFR Deal:   878 Braemar Ave SW Atlanta, GA 30311 Would we try to buy it? How much money do we need? How much would it cost to buy? Once we buy it, what are our options? Renovate it? Once Renovated, add on? Build New
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Class 11 & 12: Leases & Valuation and Development & Residual Land Value Definitions

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  Class 11: Leases & Valuation Impact Lease structures (NNN, Gross). Example: NNN lease shifts expense risk to the tenant. Class 12: Development & Residual Land Value Definitions: Hard costs, soft costs, residual land method. Example: Land worth $2M if stabilized value is $20M with  $15M costs.
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Class 9 & 10: Discounted Cash Flow Modeling & Sensitivity & Scenario Testing Stress testing assumptions

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Class 9: Discounted Cash Flow Modeling Pro forma DCF with unlevered vs. levered IRR. Example: Office building exit at 6.5% cap after 5 years. Class 10: Sensitivity & Scenario Testing Stress testing assumptions. Example: Vacancy up 5% reduces IRR from 14% to 10%. 
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Class 7 & 8 Mortgage Math, Direct Capitalization & Multipliers Definitions: cap rate, gross rent multiplier

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  Class 7 : Mortgage Math I: Amortization Definitions: principal, Interest-only, DSCR. Example: $5M loan, 30-year amortization, 6% interest.   Debt sizing based on DSCR/LTV. Example: Maximum loan on $1M NOI with 1.25 DSCR at 6% rate. Class 8: Direct Capitalization & Multipliers Definitions: cap rate, gross rent multiplier. Example: NOI of $500k / 6% cap = $8.3M value. ---------------------------------------------------------------------------------------------------------------- GIVE BACK ESPN ___________________________________________________________________________________________________________ MORTGAGES PV - Amount of Mortgage Rate - Int Rate on Mortgage Time - period to payback FV - Zero or lump sum OTHER IMPORTANT INDICATORS Gross Rents Multiplier:    Value/Periodic Return Capitalization Rates:  Income/Rate = Value    or Income/Value = Rate Future Appreciation Value based on future Income
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Class 6: Time Value of Money in Real Estate Definitions: PV, FV, annuity.

 Class 6: Time Value of Money in Real Estate Time Value of Money (TVM) — the essentials, how they fit together, and  why real estate runs on them. PV ------------------------>  Int Rate /Time ------------------->  FY Payment (inflow/Outflow) Calculator Core ideas & definitions Time Value of Money (TVM) A dollar today is worth more than a dollar tomorrow because you can invest it and earn a return (or avoid paying financing costs). TVM turns cash at different dates into comparable values using an interest (discount) rate . Interest rate (r) The growth (or discount) rate per period that moves money through time. It can be: Compounding : annually, quarterly, monthly, etc. Nominal vs. effective : effective rate reflects compounding (e.g., 6% nominal compounded monthly ≈ 6.168% effective annually). Required return/discount rate when valuing investments (includes risk and opportunity cost). Present Value (PV) What a future cash flow is wort...
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