Advanced Income Capitalization

• Recognize operating income issues, including complex lease structures, reimbursements, and tenant improvement allowances.
• Apply property valuation techniques related to property taxes that are a function of market value, reversions, property models, and supporting the discount rate.
• Identify complex mortgage instruments and the effects of leverage.
• Develop an equity valuation.
• Recognize investor motivations, including measures and types of risk, measures of return, and income tax consequences.
• Apply techniques learned to case studies involving an office building, a subdivision, and a proposed development with prospective values and values subject to hypothetical conditions.

Program Overview:
Table of Contents and Overview
Course Schedule

Assignments:
Yes. A pre-class, 2-hour online session.

Equipment:

• A financial calculator is required. The accepted model used in the program is the HP-12C. AI education programs that require a financial calculator are developed with HP-12C keystrokes; using this model is highly recommended.
• You must be familiar with calculator operation when the program begins. Do not enroll expecting to be taught how to use a financial calculator.
• For more information and a free review, click here.
• For additional help with the HP-12C calculator, take our online seminar Using Your HP-12C Financial Calculator.
• HP-12C calculator User's Manual.

Additional Information:

Course Materials Include:

• Course Handbook (539 pp.)
• Solutions Booklet (454 pp.)
• Symbols & Formulas

The diagnostic test is free and can be taken at any time on your personal computer. To register for the test, please click here.

• A pre-class, 2-hour online session
• 30 hours of traditional classroom education
• A 3-hour exam on the 5th morning.

Requirements:

• Microsoft Excel 2007 or 2010 must be loaded and operational (external mouse recommended). (You may use other spreadsheet programs, but those programs won’t be supported in class; demonstrations will be done in Excel.)
• Do not enroll expecting to be taught how to use Excel. 

• Advanced Education Diagnostic Test
• Basic Appraisal Principles
• Basic Appraisal Procedures
• National Uniform Standards of Professional Appraisal Practice (USPAP) Course, 15-Hour

RECENT successful completion:

• General Appraiser Income Approach/Part 1
• General Appraiser Income Approach/Part 2

Recommended:

• Using Spreadsheet Programs in Real Estate Appraisals—The Basics or similar course/seminar

• The Appraisal of Real Estate, 15th ed.
  
• Rates and Ratios Used in the Income Capitalization Approach
• Capitalization Theory and Techniques Study Guide, 3rd ed.
• The Dictionary of Real Estate Appraisal, 7th ed.