Two-Day Advanced Income Capitalization/A

Some AI educational programs may not be approved in every state.

Students should check state approvals prior to registering for any Appraisal Institute program.

To register for this program, go to the bottom of the page.



Who should enroll
  • Appraisal Institute Designated members who hold one or more of the following designations: MAI, SRPA, AI-GRS
  • Certified general real property appraisers
Description This two-day course reviews topics covered in the first half of the designation-track Advanced Income Capitalization course, but with a greater emphasis on the theoretical aspects of the material. Seasoned appraisers will find advanced topics that have not been covered in previous capitalization courses, along with new graphical ways to present analysis and conclusions. The course features a limited review of material covered in earlier income courses to maximize the time available for advanced topics. An OPTIONAL exam is included.

 

Advanced topics are divided into four general areas:

  • Operating income issues, including complex lease structures, reimbursements, and tenant improvement allowances
  • Property valuation techniques, property taxes that are a function of market value, reversions, property model applications, and supporting the discount rate    
  • Complex mortgage instruments
  • Case study applications of an office building

Note. Candidates for Designation may NOT take this course for designation credit.

Objectives
  • Recall and apply basic income capitalization formulas.
  • Calculate percentage rent and index rent.
  • Calculate reimbursements and resulting effective gross income.
  • Recognize eight methods for calculating replacement allowances.
  • Apply the method where the replacement allowance is implicit in the capitalization rate.
  • Identify methods of treating below-the-line expenses in direct capitalization and discounted cash flow analysis.
  • Describe and calculate three methods for computing effective rent.
  • Define and explain level equivalency constant ratio equivalency.
  • Calculate current property taxes.
  • Calculate projected property taxes and market value using an effective tax rate and loaded capitalization rate.
  • Apply the property model to three different premises (level, declining, and rising).
  • Apply the property model to support the discount rate.
  • Calculate gross building area, rentable area, and usable area in an office building.
  • Forecast income and expenses over time.
  • Calculate payment, loan balance, and term for fixed-rate amortizing mortgages.
  • Recognize and calculate debt-coverage ratio and loan-to-value ratio.
  • Value a mortgage under changing market interest rates.
  • Solve for the lender’s yield (YM) with points and other origination fees, as well as with prepayment that includes a penalty.
  • Calculate dollar amounts and yield rates associated with the various positions in wraparound mortgages.
  • Calculate debt service, mortgage balance, and debt coverage ratio.
  • Calculate cash flows and lender’s yield for a participating mortgage.



Refer to this page for details of state approval hours for this course.

  • Attended Only:

    150
  • Attended Only:

    150
  • Attended Only:

    150
  • Attend and Pass Exam:

    200
  • Attend and Pass Exam:

    200
  • Attend and Pass Exam:

    200
  • Pass Exam Only:

    55
  • Pass Exam Only:

    55
  • Pass Exam Only:

    55
14 hours
Yes. After you register for this class, please go to your Education and Events page for details on what you must complete BEFORE class begins.
 
To access your Education and Events page, log on to the Appraisal Institute website at https://ai.appraisalinstitute.org/eweb (click on the three horizontal lines to the left of the AI logo and select “My
AI Account” from the drop-down menu).
Yes
1
Intermediate
N/A
None specified Online Requirements Synchronous Requirements
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.


Classroom Offerings

No offerings at this time

Synchronous Offerings

No offerings at this time