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Rates and Ratios: Making sense of GIMs, OARs, and DCF
Kenneth M. Lusht, PhD, MAI, SRA
Appraisal Institute - Online Education
to check state approvals
Sponsor / Contact
Do you understand how various rates and ratios used in the income capitalization approach relate to each other? Do you know what effect these relationships may have on your selection and interpretation of data from comparable sales?
This seminar will provide a conceptual framework for thinking about key relationships among models, ranging from gross income multipliers to discounted cash flow models. Up until now, little focus has been placed on how these models relate to each other. These relationships have important implications for how differences in these rates and multipliers are interpreted and, in turn, for selecting and using data from comparable sales. Using a case study that follows logical progression from GIMs to DCF models, you’ll analyze specific relationships (i.e., between going-in verses going-out capitalization rates and between before-and after-tax rates). During a fast-fast moving day, you’ll gain a comprehensive overview of the broad range of relationships among key multipliers and rates.
Module 1: An Overview of Value Determination and Income Capitalization Approach Models
Module 2: The Band of Investment Model
Module 3: The Yield Capitalization Model
Module 4: Additional Rate Relationships
Module 5: How Debt Financing (Leverage) Affects Return Relationships
Produce reports that are more consistent and defensible.
Understand differences in the levels of the various rates and ratios.
Recognize how relationships between rates affect your selection and interpretation of data from comparable sales.
AI CE Credit for Designated members, Candidates for Designation and Practicing Affiliates
Attend Only = 75 points
An HP-19BII, HP-17BII, HP-12C, or equivalent calculator
If you are unable to complete a seminar once it begins, you may cancel out of the seminar before the official seminar end date. Once you cancel out of a seminar, however, you must start the seminar over at the beginning in any later enrollments. You cannot be placed into the seminar where you left off before canceling.
The following tuition refund policy is in effect for canceled online seminars based on the amount of material completed in a seminar:
Less than 25% of the seminar completed: $60 cancellation fee
More than 25% of the seminar completed: no tuition refund
If you wish to transfer a registration from one seminar to another, the following transfer policy applies based on the amount of material completed in a seminar:
Less than 25% of original seminar completed:
First transfer allowed: no charge
Second transfer allowed:
(for 7 hour programs and above)
(for 6 hour programs and below)
Any transfer not allowed beyond two
More than 25% of original seminar completed: no transfer allowed
If you transfer from a lower priced seminar to a higher priced seminar, you will be responsible for paying the difference using the automated online system. If you transfer from a higher priced seminar to a lower priced seminar, an appropriate tuition refund will be issued.
I agree to the terms and policies set forth under the
Appraisal Institute Online Education Policy
. I also certify that I am the person identified above under Personal Data and that I will personally complete each assigned module of instruction and any examination(s). I understand and agree that if I misrepresent my identity or arrange for someone else to represent himself or herself as me at any time during the Appraisal Institute online course or seminar, I will be immediately removed from the course or seminar and I will not be entitled to any refund. I further understand that if I am a member of the Appraisal Institute and participated in any misrepresentation of identity, by affirmative act or failure to act, that I will be the subject of a peer review proceeding under Regulation No. 6 for violation of the Appraisal Institute''s Code of Professional Ethics and Standard of Professional Appraisal Practice, and that such peer review proceeding may result in termination of my Appraisal Institute membership.
ONLINE CLASS ACCESS
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