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?

You are required to complete and pass a proctored offline exam if:

• you are taking this class to meet state qualifying education requirements
• you are taking this class to meet the qualifying education requirements for an Appraisal Institute designation

You may be required to complete and pass a proctored offline exam if:

• you are taking this class to meet state continuing education requirements.  Most states do not require the exam for CE credit, but please confirm this with your state licensing board.

You are not required to complete and pass a proctored offline exam if:

• if you are taking this class to meet the continuing education requirements of an Appraisal Institute designation

• Recognize definitions, principles and concepts related to the income capitalization approach.
• Identify, derive, and apply the formula on which DCF Analysis is based.
• Learn to calculate present value (PV), capital outlay, net present value (NPV) and IRR.
• Perform DCF analysis with different yield rates for income and reversion (split rates) and identify common errors in the analysis.
• Identifying characteristics of amortization and calculating a payment, loan balance, and term for fixed-rate amortizing mortgages with various payment frequencies.
• Solve for value given equity yield rates and properties with level and irregular income patterns, dollar and terminal capitalization rate-determined reversions, and DCR-determined loan amounts.
• Apply concepts learned to select an appropriate discount rate and calculate the yield rate for fee simple, leased fee, and leasehold estates in real property.
• Examine circumstances where the sum of the individual interests equals the fee simple and others where it does not.
• Recognize similarities between direct capitalization and yield capitalization using discounted cash flow.
• Identify additional information required by yield capitalization using discounted cash flow over that required by direct capitalization.
• Define types of perpetuity income patterns and calculate their value using direct and yield capitalization.
• Identify two cases for the property model (level income and compound rate of change in income and value) and the premises underlying each.
• Solve for yield rate, compound rate of change, and total change in value for both cases of the property model (level income and income and value changing at the same compound annual rate).
• Recognize differences in property model formulations and apply variations of the property model to case study problems.
• Recognize how estimated yield rates can be supported by capitalization rates extracted from comparable sales using yield capitalization formulas.
• Identify the respective characteristics of direct capitalization and yield capitalization, and compare and contrast the advantages and disadvantages of the two methods.

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.