Choose your path
Find An Appraiser         Online Store         Donate         Lum Library         Join
 View Cart View Cart
0 Registrations in Cart
Appraisal Institute  
AI Resources Education Publications Professional Practice News Advocacy About Us
Select an Offering

Rates and Ratios: Making sense of GIMs, OARs, and DCF

    Online Education
Category  General [Gen]  
Level  Intermediate  
Attendance Hours  7.0  
Current Price  $ 115.00 AI Price  
$ 137.00 Full Price  
Kenneth M. Lusht, PhD, MAI, SRA  
Appraisal Institute - Online Education
Click Here to check state approvals
  Sponsor / Contact  
  Appraisal Institute  
Phone  (877) 674-2447  
Do you understand how various rates and ratios used in the income capitalization approach relate to each other? Do you know what effect these relationships may have on your selection and interpretation of data from comparable sales?
This seminar will provide a conceptual framework for thinking about key relationships among models, ranging from gross income multipliers to discounted cash flow models. Up until now, little focus has been placed on how these models relate to each other. These relationships have important implications for how differences in these rates and multipliers are interpreted and, in turn, for selecting and using data from comparable sales.
Using a case study that follows logical progression from GIMs to DCF models, you’ll analyze specific relationships (i.e., between going-in verses going-out capitalization rates and between before-and after-tax rates). You will gain a comprehensive overview of the broad range of relationships among key multipliers and rates. There are case study exercises in this course which require fair amount of time to complete. Please note that the instructor may take 3 to 5 days grade your case study exercises so plan your time accordingly.

Course Introduction
Module 1: An Overview of Value Determination and Income Capitalization Approach Models
Module 2: The Band of Investment Model
Module 3: The Yield Capitalization Model
Module 4: Additional Rate Relationships
Module 5: How Debt Financing (Leverage) Affects Return Relationships

Learning Objectives:
    • Produce reports that are more consistent and defensible.
    • Understand differences in the levels of the various rates and ratios.
    • Recognize how relationships between rates affect your selection and interpretation of data from comparable sales.

AI CE Credit for Designated members and Practicing Affiliates
• Attend Only = 75 points

Please note that the course has mandatory assignments that the instructor will be reviewing and will release the certificate and/or exam authorization after a final review. This review can take up to 3-5 days. Expedited approval is available upon request.


A Financial Calculator is required for this class.You must be familiar with calculator operation. Answers to problems in course material are shown using the HP-12C. Please do not expect to be taught how to use a financial calculator.

Cancellation Policy
If you are unable to complete an online program once it begins, you may cancel out of the program within 30 days after the official end date. Absolutely no cancellations will be processed after 30 days of the official end date. Once you cancel out of a program, you must start the program over at the beginning in any later enrollments. You cannot be placed into the program where you left off before canceling.

The following refund policy is in effect for canceled online programs based on the amount of material completed in a program:

 Less than 25% of the program completed: $60 cancellation fee

 More than 25% of the program completed: no refund

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".

If you have any questions, please email us at  



Appraisal Institute
200 W. Madison, Suite 1500, Chicago, IL 60606
888-7JOINAI (756-4624)  |
Contact Us   |   Site Map   |   Terms & Conditions   |   Privacy Policy   |   Advertise
  Copyright © 2017 Appraisal Institute. All rights reserved.