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General Appraiser Income Approach/Part 1 Education Schedule (PDF)
Education Catalog (PDF)
Some AI educational programs may not be approved in every state.
Students should check state approvals prior to registering for any Appraisal Institute program.

ClassroomOn-Demand Online EducationLive Online (Synchronous)

After a brief review and introduction, General Appraiser Income Approach/Part 1 opens with a graphic treatment of the time value of money, the six financial functions of a dollar, and important associated concepts. A thorough, detailed analysis of gross income including leases and the various expenses appropriately deducted from gross income follows, with realistic case studies of several income property types. Direct capitalization is then presented using overall capitalization rates, band of investment, and residual techniques. Substantial class time is devoted to practicing the taught concepts to prepare participant for the exam.

Students have 45 days from the session start date to complete the course material for this program. This course is completed at the student's own pace.

Do I have to take the course exam?
An offline proctored exam is part of the course. You will have 90 days from the time that you complete the course to complete the exam. Testing center locations in your area can be found by clicking on this link:

Learning Objectives[PDF]
Module 1: Introduction to the Income Capitalization Approach    
Module 2: Time Value of Money and Related Concepts  
Module 3: Time Value of Money and Related Concepts, cont.    
Module 4: Tables, Six-Function Summary, and Other Level-Income Problems      
Module 5: Review and Overview of Income Capitalization           
Module 6: Analyzing Income: Income and Leases Introduction    
Module 7: Analyzing Income: Lease Characteristics and Concepts          
Module 8: Vacancy and Collection Loss and Effective Gross Income     
Module 9: Operating Expenses and Reimbursements, Replacement Allowances, Expense Tests of Reasonableness and Below-the-Line Expenses          
Module 10: Industrial Building Case Study         
Module 11: Retail Case Study   
Module 12: Financial Functions, Direct Capitalization and Operating Income Review        
Module 13: Converting Income into Value: Deriving and Applying Multipliers and Overall Capitalization Rates       
Module 14: Converting Income into Value: Deriving and Applying Capitalization Rates and Calculating Reversions
Module 15: Converting Income into Value: Deriving Capitalization Rates Using Band of Investment Techniques    
Module 16: Residual Techniques           
Module 17: Mortgage and Equity Residual Analysis       
Module 18: Appropriate Leasehold/Leased Fee Residuals and Summary 
Module 19: Band of Investment and Residual Review     
Module 20: Review of Income Capitalization and Other Exam Preparation           
Module 21: Extraction of Rates and Ratios from a Comparable Sale (Office Building Case Study)           
Module 22: Exam Review          
Course Conclusion

AI CE Credit for Designated members and Practicing Affiliates
• Attend Only = 175 points (residential) or 150 points (general)
• Attend and Pass Exam = 225 points (residential) or 200 points (general)
• Pass Exam Only = 200 points (residential) or 150 points (general)
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General [Gen]

Basic Appraisal Principles, Basic Appraisal Procedures.

This class has been developed for those seeking general Appraiser Certification, underwriters, lenders, and assessors.

Required Technology

  • A financial calculator is required. The accepted model used in the course is the HP-12C. Candidates taking most AI exams may bring their own calculator to use during the exam. Candidates should be fully aware that AI courses are developed with HP12C keystrokes, and that using an HP12C is highly recommended.
  • IMPORTANT! You will be asked to clear the calculator's memory before and after the examination. Only one calculator is permitted in the testing room.
  • 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.
  • HP-12C calculator user's manual
  • You must be familiar with calculator operation when the course begins. Answers to problems in course material are shown using the HP-12C. Do not come to class expecting to be taught how to use a financial calculator.
  • Free Review:Using a Financial Calculator; Formulas, Symbols, Math Review, and Sample Problems and Financial Calculator Practice Exercises
  • For additional help with the HP-12C calculator, take our online seminar, Using Your HP-12C Financial Calculator
  • Recommended Text
    None Specified.

    AI Price: $ 455.00
    Full Price: $ 555.00

    Click Here for State Approvals

    David C. Lennhoff, MAI, SRA

    I agree to the terms and policies set forth under the Appraisal Institute Online Education Policy. I also certify that I am the person identified above under Personal Data and that I will personally complete each assigned module of instruction and any examination(s). I understand and agree that if I misrepresent my identity or arrange for someone else to represent himself or herself as me at any time during the Appraisal Institute online course or seminar, I will be immediately removed from the course or seminar and I will not be entitled to any refund. I further understand that if I am a member of the Appraisal Institute and participated in any misrepresentation of identity, by affirmative act or failure to act, that I will be the subject of a peer review proceeding under Regulation No. 6 for violation of the Appraisal Institute's Code of Professional Ethics and Standard of Professional Appraisal Practice, and that such peer review proceeding may result in termination of my Appraisal Institute membership.

    Additional Information
    Please allow 1 hour after registration to start an online session in progress (on or after the session start date). Go to and log in with the username and password you used when you registered. You will automatically be taken to the "My Appraisal Institute" page. Near the middle of that page your course will be listed with a link next to it that says "Go To Class".

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