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 class time is devoted to practicing the taught concepts to prepare participant for the exam.
Students have 45 days from the session start date to complete the course material for this program. This course is completed at the student's own pace.
Do I have to take the course exam?
An offline proctored exam is part of the course. You will have 90 days from the time that you complete the course to complete the exam. Testing center locations in your area can be found by clicking on this link: www.pearsonvue.com/ai.
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)
Module 22: Exam Review
AI CE Credit for Designated members, Candidates for Designation and Practicing Affiliates
This program is approved for 1 hour of Appraisal Institute CE credit for every hour taken.