General Appraiser Income Approach/Part 2

About this course

After a diagnostic quiz on the six financial functions of one and a brief review, the course begins with a thorough treatment of discounted cash flow (DCF) analysis. Topics include identifying components of a DCF, projecting cash flows, analyzing leases, solving for value in a variety of common situations, and supporting the discount rate. The effects of debt financing, including cash equivalence and equity analysis, are covered in detail. Income patterns and property models, including residual and other applications, are followed by material on how to select and support the discount rate. Also presented are the strengths and weaknesses of direct and yield capitalization. The final section reviews and summarizes the mathematical concepts involved with income capitalization.

What you’ll learn

Forecast incomes and expenses for a multiyear holding period.
Forecast reversions for a multiyear holding period.
Discount overall mortgage and equity cash flows to present value.
Use yield capitalization formulas to calculate present value.
Use data and sources to select and support risk-adjusted discount rates.
Solve problems in lease analysis, risk and investment analysis, leverage, and subdivision analysis.
Value partial interests.

Course curriculum

Introduction
Module 1: Discounted Cash Flow Analysis
Module 2: Components of Discounted Cash Flow Analysis
Module 3: Forecasting Cash Flow
Module 4: Property Discounted Cash Flow Analysis Using Overall Yield Rate
Module 5: Property Discounted Cash Flow Analysis Using Overall Yield Rate (Cont.)
Module 6: Property Discounted Cash Flow Analysis Using Overall Yield Rate (Cont.)
Module 7: Mortgages
Module 8: Mortgages (Cont.)
Module 9: Yield and Mortgage Review
Module 10: Equity Valuation
Module 11: Lease Analysis
Module 12: Equity and Lease Analysis Review
Module 13: Discounted Cash Flow Review
Module 14: Income Patterns
Module 15: Introduction to Property Models: Solving for Value
Module 16: Introduction to Property Models: Solving for Yield and Change in Value
Module 17: Property Model Applications
Module 18: Supporting the Discount Rate
Module 19: Capitalization Review
Module 20: Reconciliation and Consistency Across the Approaches
Conclusion