In this course advanced applications of the income capitalization approach are investigated and explored. Discounted cash flow (DCF) 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, risk analysis, and ways to support a discount rate are highlighted.
This course may be used to fulfill the 30-hour Elective topic requirement toward certification in states where approved for QE credit. NOTE: This course is not a substitute for the prerequisite General Appraiser Income Approach, Parts 1 & 2 courses.
Note: Required MAI Designation Course
Content
- Review of income capitalization concepts
- Estimating cash flows
- Investment analysis concepts
- Risk analysis
- Financial leverage
- Yield capitalization (DCF) using an overall yield rate
- Supporting the discount rate
- Application of concepts
- Stabilizing income and yield capitalization (DCF) using an equity yield rate
What You Will Gain
At the end of the course, you will be able to:
- Understand the different assumptions underlying direct capitalization and yield capitalization
- Project cash flows from net operating income and reversion
- Identify the yield capitalization procedures used to value a property
- Evaluate the risk associated with an income property investment
- Apply the concepts learned to estimate a discount rate
Required Texts
Recommended Texts
 | The Appraisal Institute is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be addressed to the National Registry of CPE Sponsors, 150 Fourth Avenue North, Nashville, TN, 37219-2417. Web site: www.nasba.org.
Delivery Method: Group-Live |
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Program Overview
Table of Contents and Overview [PDF] 
Course Schedule [PDF]
Recommended Text
Ordering Information
To order books and other materials go to
our store
Tuition
Please contact the sponsoring chapter for information on fees applicable to chapter programs.
Required Equipment
HP12C calculator
You must be familiar with calculator operation when the course begins. Answers to problems in course material are shown using the HP12C. Do not come to class expecting to be taught how to use a financial calculator.
Free Review—Using a Financial Calculator; Formulas, Symbols, Math Review, and Sample Problems; and Financial Calculator Practice Exercises
For additional help with the HP12C calculator, take our online seminar, Using Your HP12C Financial Calculator.
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Appraisal Institute Credit Hours
40 (including 4-hour exam)
Prerequisites
Successful completion of Basic Appraisal Principles, Basic Appraisal Procedures, General Appraiser Income Approach/ Part 1, and General Appraiser Income Approach/Part 2, or equivalent courses is required.
Students must sign a waiver at the beginning of the course stating that they have the prerequisites. If they do not, they will not hold the Appraisal Institute responsible and will not expect to receive special attention during the course.
Who Should Enroll
General appraisers with a solid background in the income capitalization approach, accountants
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Class Schedule & Locations |
12/03/2009 - 12/10/2009
Location: Phoenix, AZ
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Sponsor: Phoenix
Contact: Jeannie Beeaff, (602) 284-6219
Instructor: Kirby, Thomas R., MAI, SRA
01/21/2010 - 01/27/2010
Location: Chicago, IL
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Sponsor: Chicago
Contact: Kate Fulfold, (312) 616-9405
Instructor: Slucter, Kern G., MAI, SRA & Pending, Instructor
02/08/2010 - 02/13/2010
Location: Houston, TX
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Sponsor: Houston
Contact: Ginger Coleman, (713) 668-1757
Instructor: Kirby, Thomas R., MAI, SRA & Whitmer, Ted R., MAI
04/15/2010 - 04/21/2010
Location: Independence, OH
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Sponsor: Northern Ohio
Contact: Amy Cramer, (216) 520-0560
Instructor: Rattermann, Mark R., MAI, SRA & Pending, Instructor
05/17/2010 - 05/22/2010
Location: Arlington, TX
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Sponsor: North Texas
Contact: Ruth Kelton, (972) 233-2244
Instructor: DeWeese, Gary S., MAI & Massey, Jay M., MAI, SRA
05/20/2010 - 05/26/2010
Location: Aurora, CO
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Sponsor: Colorado
Contact: Sherry Engleberg, (303) 691-0487
Instructor: DeWeese, Gary S., MAI & Pending, Instructor
06/11/2010 - 06/17/2010
Location: San Diego, CA
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Sponsor: San Diego
Contact: Patti Kreutzer, (858) 292-7324
Instructor: Roach, Stephen D., MAI & Pending, Instructor
08/02/2010 - 08/07/2010
Location: Atlanta, GA
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Sponsor: Atlanta Area
Contact: Suzanne Brockway, (770) 803-0024
Instructor: Taylor, Gary P., MAI, SRA & Vernor, PhD, James D., MAI
08/09/2010 - 08/13/2010
Location: Tampa, FL
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Sponsor: West Coast Florida
Contact: Nancy Bachor, (813) 935-4311
Instructor: Holzhauer, Harry B., MAI, SRA & Gillott, John A., MAI, SRA
09/13/2010 - 09/18/2010
Location: Houston, TX
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Sponsor: Houston
Contact: Ginger Coleman, (713) 668-1757
Instructor: Kirby, Thomas R., MAI, SRA & Whitmer, Ted R., MAI
09/16/2010 - 09/22/2010
Location: Arcadia, CA
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Sponsor: Southern California
Contact: Lianna Chaparyan, (818) 957-5111x20
Instructor: Dowling, Vincent M., MAI, SRA & Pending, Instructor
09/16/2010 - 09/21/2010
Location: Spokane, WA
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Sponsor: Inland Northwest
Contact: Darcy Galvan, (509) 489-2208
Instructor: DeWeese, Gary S., MAI
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