Overview

After a diagnostic quiz on the six financial functions of one and a brief review, General Appraiser Income Approach/Part 2 opens with a thorough treatment of discounted cash flow (DCF) analysis. Topics include identifying components of a DCF, projecting cash flows, analyzing leases, solving for value in a variety of common situations, and supporting the discount rate. The effects of debt financing including cash equivalence and equity analysis are covered in detail. Income patterns and property models including residual and other applications are followed by selecting and supporting the discount rate. Also presented are the strengths and weaknesses of direct and yield capitalization. The final section reviews and summarizes the mathematical concepts involved with income capitalization and prepares the participant for not only the course exam but also the certification exam.

Syllabus

AI CE Credit

For General:

  1. Attend and Pass Exam = 200 Points
  2. Attendance Only = 150 Points
  3. Pass Exam Only = 150 Points


For Residential:

  1. Attend and Pass Exam = 225 Points
  2. Attendance Only = 175 Points
  3. Pass Exam Only = 200 Points

Type of Program

Qualifying Education

Prerequisites

Basic Appraisal Principles
Basic Appraisal Procedures
General Appraiser Income Approach, Part 1

Attendance Hours: 27
Exam Hours: 3
State Approvals: Search by State
Number of Components: 1
Total Number of Pages: 468
Level: Intermediate
Type: General
For Further Reading: The Appraisal of Real Estate, 14th ed. Capitalization Theory and Techniques Study Guide, Third Edition Mathematics for Real Estate Appraisers Rates and Ratios Used in the Income Capitalization Approach