Advanced Income Capitalization

Description

Advanced Income Capitalization builds on topics covered in the General Appraiser Income Approach/Part 1 and General Appraiser Income Approach/Part 2 courses. It introduces additional topics that a seasoned general real property appraiser can expect to meet in everyday practice. The course features a limited review of material covered in the previous income courses to maximize the time available for advanced topics.
 
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. 
Sponsor Date Location Delivery Format Check
State Approvals
 
Appraisal Institute January 17-27, 2023 Synchronous  Check Register
Chicago Chapter February 06-10, 2023 Chicago, IL Classroom  Check Register
Greater Oregon Chapter February 20-24, 2023 Wilsonville, OR Classroom  Check Register
Bluegrass Chapter June 05-09, 2023 Louisville, KY Classroom  Check Register
Chicago Chapter September 11-15, 2023 Rosemont, IL Classroom  Check Register

Program State Approval & Hours

Some AI educational programs may not be approved in every state and every delivery format. To see a list of all state approvals across all formats for this course, please use the link below.

View all approvals for this course

Who should Enroll

  • General real property appraisers with a solid background in the income capitalization approach
  • Candidates for Designation who are working toward an MAI designation
  • Accountants

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.

Prerequisites


Exam

Yes, 3 hours

Level

Advanced

Appraisal Institute CE Points

Attend: 275 AI Points,  Attend and Pass Exam: 375 AI Points,  Pass Only: 325 AI Points

Class Time

30 hours

Assignments

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

Program Overview


Required and/or Recommended 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.

System Requirements

Classroom & Synchronous
  • 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. 

Synchronous

Live Online FAQ

  • 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. 

Additional Information

Classroom & Synchronous

Course Materials Include:

  • Course Handbook (541 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 Practicing Affiliates 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.

Synchronous

Course Materials Include:

  • Course Handbook (541 pp.)
  • Solutions Booklet (454 pp.)
  • Symbols & Formulas
Course Design
This course implements a blended learning approach which includes:
  • Mandatory diagnostic test. Before enrolling in this or any other MAI designation course, you must take an Excel diagnostic to demonstrate your mastery of solving appraisal problems using spreadsheets. The diagnostic is intentionally designed to be challenging and ensure participants have adequate Excel skills before taking MAI designation courses.  The diagnostic test is free and can be taken at any time on your personal computer. To register for the test, please click here. For more information, check out the Diagnostic FAQ.

  • A pre-class, on demand (self-paced) online session component. The on demand component is available beginning 28 days before the live online (synchronous) course begins.  The online component requires the completion of a pre-class assignment at least 2 days before the live online (synchronous) course begins.

  • 30 hours of live online (synchronous) education. Each live online session runs for 4.0 hours each day with at least 2 breaks during that time. The course runs for 8 half-days (Monday – Thursday) over 2 weeks.

  • A 3-hour proctored exam at an offline testing center. You will have 90 days from the time that you complete the course to take the proctored exam. Testing center locations in your area can be found by clicking on this link: www.pearsonvue.com/ai.

Pricing
Appraisal Institute Designated members, Candidates for Designation, and Practicing Affiliates will receive the discounted AI Price for MAI Designation education courses: Advanced Income CapitalizationAdvanced Market Analysis and Highest & Best UseAdvanced 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

Other Details


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