General Appraiser Income Approach/Part 1

About this course

After a brief review and introduction, General Appraiser Income Approach/Part 1 opens with a graphic treatment of the time value of money, the six financial functions of a dollar, and important associated concepts. A thorough, detailed analysis of gross income including leases and the various expenses appropriately deducted from gross income follows, with realistic case studies of several income property types. Direct capitalization is then presented using overall capitalization rates, band of investment, and residual techniques. Substantial instruction time is devoted to practicing concepts taught in the course.

What you’ll learn

Expand competencies in performing income and expense analysis.
Gain a foundation in direct capitalization techniques and applications.
Extract and apply rates from the market.
Identify fundamentals of risk and investment analysis.
Expand competency in compound interest theory and calculations.
Forecast revenues.
Estimate expenses.
Value partial interests.

Course curriculum

Introduction
Module 1: Introduction to the Income Capitalization Approach
Module 2: Time Value of Money and Related Concepts
Module 3: Time Value of Money and Related Concepts, cont.
Module 4: Tables, Six-Function Summary, and Other Level-Income Problems
Module 5: Review and Overview of Income Capitalization
Module 6: Analyzing Income: Income and Leases Introduction
Module 7: Analyzing Income: Lease Characteristics and Concepts
Module 8: Vacancy and Collection Loss and Effective Gross Income
Module 9: Operating Expenses and Reimbursements, Replacement Allowances, Expense Tests of Reasonableness and Below-the-Line Expenses
Module 10: Industrial Building Case Study
Module 11: Retail Case Study
Module 12: Financial Functions, Direct Capitalization and Operating Income Review
Module 13: Converting Income into Value: Deriving and Applying Multipliers and Overall Capitalization Rates
Module 14: Converting Income into Value: Deriving and Applying Capitalization Rates and Calculating Reversions
Module 15: Converting Income into Value: Deriving Capitalization Rates Using Band of Investment Techniques
Module 16: Residual Techniques
Module 17: Mortgage and Equity Residual Analysis
Module 18: Appropriate Leasehold/Leased Fee Residuals and Summary
Module 19: Band of Investment and Residual Review
Module 20: Review of Income Capitalization and Other Exam Preparation
Module 21: Extraction of Rates and Ratios from a Comparable Sale (Office Building Case Study)
Course Conclusion