Certified for 7 hours of continuing education in AL, AZ, CA, CO, CT, GA, KS, KY, MI, MO, MS, NC, NE, NJ, NV, OH, OR, RI, SC, TN, TX, UT, VA, WA, and WV. More states coming soon!
The purpose of this course is to introduce participants to the fundamental techniques of direct capitalization, and to support the mechanics of capitalization with an examination of the market factors that influence both the performance and value of income property. Specifically, it is a learn-by-doing study that also provides some discussion of why things work the way they do. Those who are not experienced in the analysis of income-producing property will learn the fundamentals which serve as a stepping stone to more in-depth studies.
By the conclusion of the study, students will be able to perform well-reasoned analysis of income properties; understand gross income, expenses, and NOI; understand how to apply the direct capitalization process in light of actual market activity; and form a reliable conclusion as to value and performance of the property.
Who will gain from this course
Residential appraisers looking to move into greater exposure to the world of commercial property appraising and consulting.
Brokers and agents, either commercial or residential, who want to understand why appraisers do what they do, and to take some of the mystery out of the process of formal analysis/valuation.
Real estate professionals such as attorneys, lending officers, underwriters, or accountants who want to gain a greater understanding of the fundamentals used by appraisers and consultants.
Commercial appraisers and consultants who benefit from a review of the fundamentals.
• Define and Discuss common terminology used in Income Capitalization
• Learn and understand the property rights of real estate
• Examine the differences between Fee Simple and Leased Fee value
• Understand the concepts of Rent, Potential Income and Effective Income
• Understand and analyze operating expenses
• Learn the process of Income Capitalization to estimate value
• Perform an actual property valuation based on sample market data
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Jack Bailey is an appraiser, author, and business owner. He is a Nashville native, serving the local appraisal community there for over 30 years. He regularly speaks at appraisal events and has written many courses throughout his career.
MAI, Member, Appraisal Institute; Member #9317 (1992)
SRPA, Senior Real Property Appraiser – Appraisal Institute (1990)
SRA, Senior Residential Appraiser – Appraisal Institute (1989)
Textbook Author and Instructor, “Introduction to Income Capitalization”
Instructor to Japanese appraisers studying income property valuation in the United States
President, Nashville-Middle TN Chapter of the Appraisal Institute, 1999