The 35-hour Advanced Income Capitalization course implements a blended learning approach, which includes:
• A pre-class, 2-hour online session
• 30 hours of live online (synchronous) education. Each live online synchronous sessions runs for four (4) hours each day with at least two breaks during that time. The course runs for eight (8) half-days over two weeks. What is live online (synchronous) education? How does it work?
• A 3-hour 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
For specific offering details including exact dates and times, click on "location details" to the right under "Class Schedule & Locations"
• Operating income issues, including complex lease structures, reimbursements, and tenant improvement allowances
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 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. Advanced topics are divided into six general areas:
• Property valuation techniques, property taxes that are a function of market value, reversions, property model applications, and supporting the discount rate
• Complex mortgage instruments and the effects of leverage
• Equity valuation
• Investor motivations, including measures and types of risk, measures of return, and income tax consequences
• Case study applications of an office building, a subdivision, and a proposed development with prospective and subject to hypothetical values
Other Important Information
• Please review the FAQs for important information regarding registration and cancellation deadlines; mandatory diagnostic test; online session; course equivalencies
• Please verify that this program is approved for credit in your state before registering. Click here.
• Designated Members and Candidates for Designation will receive the discounted AI Price for Advanced Education courses: Advanced Income Capitalization, Advanced Market Analysis and Highest and Best Use, Advanced Concepts and Case Studies, and Quantitative Analysis. All others will receive the Full Price.
• For more information on how to become a Candidate for Designation,
Table of Contents and Overview (PDF)
• Capitalization Theory and Techniques Study Guide, 3rd ed.
• The Dictionary of Real Estate Appraisal, 5th ed.
• Rates and Ratios Used in the Income Capitalization Approach
To order books and other materials go to
• Laptops (external mouse recommended)
• Spreadsheet program: Excel 2007 (participants can use other spreadsheet programs, but those programs won’t be supported in class; demonstrations will be done in Excel)
• A financial calculator is required. The accepted model used in the course is the HP-12C. Note: Cellular phones, tablets, iPads, and other devices that connect to the Internet are NOT permitted during the exam.
• You must be familiar with basic Excel and calculator operation when the course begins. Answers to problems in course material are shown using Excel and the HP-12C. Do not come to class expecting to be taught how to use Excel or 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.
AI CE Credit for Designated Members and Practicing Affiliates
• Attend Only = 275 points
• Attend and Pass = 375 points
• Pass Exam Only = 325 points
Advanced Education Diagnostic Test
Basic Appraisal Principles
Basic Appraisal Procedures
15-hour National USPAP
RECENT successful completion:
General Appraiser Income Approach/Part 1
General Appraiser Income Approach/Part 2
• Using Spreadsheet Programs in Real Estate Appraisals - The Basics
Participants must sign a waiver at the beginning of the course stating that they have the prerequisites. If they do not, they will not hold the Appraisal Institute responsible and will not expect to receive special attention during the course.
Who Should Enroll
• General appraisers with a solid background in the income capitalization approach
• Required MAI Designation course
Click Here for State Approvals