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.
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
• 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.