This course is iPad compatible. One of three approaches to value, the Income Approach to value converts anticipated benefits into an estimate of market value. The Income Capitalization Approach works inter-dependently with the Cost Approach and the Sales Comparison Approach in estimating value. This course is intended to provide the participant with basic skills as it relates to terminology and application of the Income Approach. Included is the development of reliable Effective Gross Income Estimates, Vacancy and Collection Loss, Analyzing Operating Expenses and calculating Net Operating Income. Using the Capitalization Process the participant will convert the Net Operating Income into an estimate of market value. The case studies will focus on existing improved commercial real estate in a competitive marketplace.
1. Concepts of the Income Approach to Value
2. Estimating Net Operating Income
3. Estimating Stabilized Expenses
4. Direct Capitalization Process
6. Income Approach Terminology
8. Final Exam
5. Comprehensive IRV Analysis