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402 - Introduction to the Income Capitalization Approach

  • Course Number: C402
  • Course Title: Introduction to the Income Capitalization Approach
  • Course Level: Core
  • IRWA Credits: 8 QEU / CEU
  • AQB Credits: Not Applicable
  • Prerequisites: Not Applicable
This course introduces the income capitalization approach, which is a method of evaluating an investment by estimating future cash flows and taking into consideration the time value of money. This approach is presented in a concise, easy-to-understand format, and combines lecture, case studies and exercises to teach participants how to apply income capitalization in a variety of situations.
Credentialing
  • Specialist: A beginning level elective course that can be applied towards the R/W-AC certification.
Topics
  • The relationship between the Valuation Process and the Income Capitalization Approach
  • The applicability and reliability of the approach
  • The characteristics of Direct and Yield Capitalization
  • The components of Direct Capitalization (determining gross income, estimating vacancy and credit loss, calculating effective gross income, estimating expense and estimating value)
  • Capitalization Rate Development
  • Determining Just Compensation
Course Tuition Includes
  • Participant Manual
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