Appraisal Institute Income Approach

[MAIorBust]

I am taking my income classes this month. What would you guys suggest studying up on before I get there? Thanks!

 

[Michigan CG]

HP-12C strokes.

 

[Ken B]

What Tim said.

This will help if you don't already have it.

http://www.appraisalinstitute.org/education/fin_calc.aspx

 

[Restrain]

If you can get an old workbook and look at the examples, that will help too.

 

[Restrain]

Here's some more: The functions of a dollar - big time. Know the terms backwards and forwards (net, triple-net leases, stabilized income, market rent, contract rent, reversion at the end of the lease, Valuation processes (land extraction, building extraction, and gross capitalization with no extraction). Look at how you derive a cap rate (extraction, building a rate, etc). Finally, delve into the Discounted Cash Flow. It's a useless exercise, especially in today's market, but it's part of it.

I don't know your background, but all of this you should see and will be tested on it. It's better to review it than go in cold.

When I took the class, I came down with double pneumonia (Yep!), but I made it through. It was tough, but it was the best course I ever took. I seldom use the stuff now, but I've still got my advanced income approach study manual on my bookcase for reference.

Good luck.

 

[Terrel L. Shields]

Know your six functions of a dollar and how to do them with the 12 C and you are a long way towards absorbing the rest of the class...betcha. Never had the course but a super 12 C course I took just before taking my CG test was possibly the best class i ever took (BTW, the instructor was, as an appraiser so bad, his best friend fired him and the state board almost sanctioned him once. I found that out from an old time appraiser who was the guy who fired him.) I took a 12C course previously with NAIFA but it was no where nearly as good.

 

[mgalleshaw]

I thought the Appraisal Institute Income Approach was to require members to take classes not offered by anyone but the Appraisal Insititute.
MGalleshaw

 

[PropertyEconomics]

I thought the Appraisal Institute Income Approach was to require members to take classes not offered by anyone but the Appraisal Insititute.
MGalleshaw

Funny comment ... however, no education provider offers better courses than the AI .. no matter what you think of the organization, they do education above and beyond anything offered in the market place that I have found.

My suggestion is to be prepared to study hard and study every night ... the courses are not easy and I will tell you if you by chance have a very smart class .. study harder .. it has been my experience that in such instances the tests are a BEAR ....

 

[mgalleshaw]

Gee, PE, loosen up. I thought it was a good joke and tied to the thread topic. Sorry, I seem to have offended you and really didn't see that coming.
If I didn't think AI was a good organization, I would have never have gotten my designation with them, or taught most of their classes, or written articles for their publications, or graded their demo reports... It just strikes me as odd that designated members are now required to take 25 hours of classes each cycle which are not available from any other provider, run higher costs than their other courses for similar hours, and I would probably not have chosen to take. "Business Practices and Ethics" and "General: Appraisal Cirriculum?" Maybe I'll feel differently after I have had them. (Must complete by 12/31)
MGalleshaw

 

[PropertyEconomics]

Gee, PE, loosen up. I thought it was a good joke and tied to the thread topic. Sorry, I seem to have offended you and really didn't see that coming.
If I didn't think AI was a good organization, I would have never have gotten my designation with them, or taught most of their classes, or written articles for their publications, or graded their demo reports... It just strikes me as odd that designated members are now required to take 25 hours of classes each cycle which are not available from any other provider, run higher costs than their other courses for similar hours, and I would probably not have chosen to take. "Business Practices and Ethics" and "General: Appraisal Cirriculum?" Maybe I'll feel differently after I have had them. (Must complete by 12/31)
MGalleshaw

I said FUNNY COMMENT .. it was funny .... and you will like the classes. They challenge you ... I thought it was a great comment ... I will edit and put in a smiley or something.
And on a more serious note, I think the AI realizes, as well as their members, that general appraisal classes from most providers are simply not worth the money and you learn nothing. AI members also take advantage of 7 hour seminars offerd by AI so the real burden in 25 hours is not all that horrible.

I applaud their education

And again .. FUNNY COMMENT .....