Advanced Income Capitalization

Explore advanced applications of the income capitalization approach. Discounted cash flow analysis provides the framework for much of the discussion of investment analysis concepts, emphasizing an understanding of the relationships among the various components of DCF, financial leverage, and risk analysis. Hands-on computer spreadsheet modeling techniques are illustrated.

Note: This course is in the Real Estate Analyst Professional Development Program. View this list of FAQs, which includes information regarding the courses you'll need to complete the program successfully.   

Room Block: Hotel Room Booking Link
Group Name: NC Appraisal Institute
Group Code: 92V

Course Objectives

• 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.

Course Details

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

Please review the FAQs for important information regarding registration and cancellation deadlines; mandatory diagnostic test; online session; and course equivalencies.

Designated members, Candidates for Designation, and Associate Members will receive the discounted AI Price for the MAI designation courses: Advanced Income Capitalization, Advanced Market Analysis and Highest & Best Use, Advanced Concepts & Case Studies, and Quantitative Analysis. All others will pay full price.

For more information on how to become a Candidate for Designation, click here.

Important Note: Mandatory Diagnostic Test
Before enrolling in this or any other MAI designation course, you must take a diagnostic test. The Excel diagnostic tests your mastery of solving appraisal problems using spreadsheets. This diagnostic test was intentionally designed to be challenging and ensure participants have adequate Excel skills before taking MAI designation courses. For more information, check out the Diagnostic FAQ.

Excel is used extensively in the MAI designation courses; it is highly recommended that you know how to perform the necessary appraisal functions in Excel to succeed in this course.

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

This course implements a blended learning approach, which includes:

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

You will be asked to clear the calculator’s memory before and after the examination. Only one calculator is permitted in the testing room. Examinees taking most AI exams may bring their own calculator to use during the exam. Laptops, cellular phones, tablets, iPads, wearable technology (smart watch, Apple Watch, Google Glass, etc.), and other devices that can store data or connect to the Internet are NOT permitted during the exam. In addition, all watches, wallets, bags, and purses must be removed and stored out of reach prior to taking the exam.

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. 

The Appraisal Institute enforces attendance requirements mandated by state licensing and certification regulatory agencies. The Appraisal Institute issues certificates for state certification/licensing or state continuing education credit that verify successful completion and attendance of 100% with your grade notification letter for courses, or at the conclusion of seminars. One hundred percent (100%) attendance is required for all Appraisal Institute education programs. This follows Appraiser Qualifications Board minimum criteria requirements.

Area Hotels/Lodging:

Hotel Room Booking Link

Group Name: NC Appraisal Institute

Group Code: 92V

*Class is being held in the same hotel*

*Rooms are being offered at a special rate of $160 per night and comes with free shuttle to/from the airport*

Schedule:

Registration: 8:00 a.m. eastern time

Class Begins: 8:30 a.m. eastern time

Class Ends: 5 (ish) p.m. eastern time

Refreshments will not be provided but you are allowed to bring in your own. You will have one hour on your own for lunch.  There are a lot of options near the class venue.  Some are within walking distance even.