Appraisal Institute - Advanced Income

[seattle98116]

I am taking Advanced Income in June and just got the course book in the mail. I looked over it already and it deals with a lot of the same stuff as I & II, but it looks like much more in depth (as someone already said). There is tax stuff in there too.
I just took the on-line 2-hour segment last week (new requirement) and that was a recap of Income I.
I also heard that you use MS Excel a lot during the course, but on the exam, you use the 12C.

Justin Slack, SRA
Seattle, WA

 

[John Glass]

Two pieces of advice. If you're not using an HP 12C, get one and start using it. It's the common denominator in AI classes. Load up whatever calculator with fresh batteries before class. I actually ran a calculator into the ground that week. I call it the Calculator Olympics.

 

[TianaR]

I just finished this class on 6/4. It deals with alot of course material. Calculating different yields from the lender and borrower's perspective using DCF, using loaded cap rates to calculate real estate taxes, converting yield rates to cap rates and vice versa when knowing constant rate of change etc., calculating effective rent using straight line method and modified, hoskoll vs inwood methods to determine value, negative and positive leverage, cash equivaliency and alot of concept questions. I would say half of the test was concept questions.

 

[leasedfee]

Work all of the math problems. It is insufficient to glance at it and "feel" you understand.

 

[TianaR]

Additional Advice

I just finished this class on 6/4. It deals with alot of course material. Calculating different yields from the lender and borrower's perspective using DCF, using loaded cap rates to calculate real estate taxes, converting yield rates to cap rates and vice versa when knowing constant rate of change etc., calculating effective rent using straight line method and modified, hoskoll vs inwood methods to determine value, negative and positive leverage, cash equivaliency and alot of concept questions. I would say half of the test was concept questions.

I took the course with John Urebek, MAI and he is a great instructor that breaks down complex concepts into understable ones. It was the second MAI level course that I have taken w/him. Highly Reccomend! Also, understand relationships between the different yields and cap rates in regards to the mortgage, overall, and equity (leverage) is a large concept in this course. Good luck!

 

[kaner]

I just took this class in San Deigo and TianaR gives a great overview. I took Income Part 2 immediately before Advanced Income Cap (AIC) and feel like it was a great prep course for AIC. Day 1 was nearly all review from Income 2 but then the pace picked up rapidly.

The main differences I noticed: In Income 2, every example in the text is blank and there is class time alloted to calculate and solve every problem. In AIC, the problem is presented, HP-12C keystrokes shown, answer provided, onto the next problem. Also, Income 2 goes through a lot of IRV for Land and Bldg; AIC is all IRV at the MET. Exact same stuff, just different labels but mortgage/equity seems more difficult to grasp than land/bldg. Lots of material, I would recommend clearing your evenings for study time.

The additional provided blue answer book is great. Best advice I can offer- every night, go over the "Self-Study Problems." They are broken down day by day and most people (myself included) didn't realize they were there until the last night or two of studying. Keep up with the class or you will be left in the dust!

I also agree that a great instructor can make a world of difference. Stephen Roach was an absolutely exceptional instructor and highly recommended. He has a brilliant mind, a real teaching skill, lots of experience teaching this specific course (he was highly recommended to me), presents the complicated material in understandable ways and is a genuinely nice guy.

All in all, great course, no one seemed to be overwhelmed for all the hype. Good idea to take it right before the comp exam. Good luck!

It deals with alot of course material. Calculating different yields from the lender and borrower's perspective using DCF, using loaded cap rates to calculate real estate taxes, converting yield rates to cap rates and vice versa when knowing constant rate of change etc., calculating effective rent using straight line method and modified, hoskoll vs inwood methods to determine value, negative and positive leverage, cash equivaliency and alot of concept questions. I would say half of the test was concept questions.