This short training course is for both relatively new commercial real estate analysts and lenders as well as for experienced analyst and lenders who need to refresh their understanding of a) the income capitalization approach to establishing market value and b) the use and misuse of stabilized NOI or cash flow in the credit decision process.
Explore the benefits and limitations of each standard approach to establishing market value for an income producing property with specific focus on the income capitalization approach;
Review the use of estimates and the critical role of the appraiser’s judgment in establishing market value using any of the standard valuation approaches;
Examine the derivation and use of the capitalization rate and its application in establishing the investment value of an income producing property;
Determine the amount of interest-bearing debt an income producing property can support from existing, rather than stabilized, net operating income;
Review and understand the basic conflict between the primary focus of an appraisal report and the primary focus of the lender in using appraisal report information to reach a credit decision; and
Examine the essential issue of properly identifying and assessing property cash flow in reaching a credit decision.
Course
Materials
Credit Refresher
on The Income Capitalization
Approach
Presentations Slides
Online
Closure Questions
Upon
Completion
Participants who successfully
complete the workshop will
be able to:
Understand the benefits and limitations of each standard approach to establishing market value for an income producing property with specific focus on the income capitalization approach;
Understand the use of estimates and the critical role of the appraiser’s judgment in establishing market value using any of the standard valuation approaches;
Understand the derivation and use of the capitalization rate and its application in establishing the investment value of an income producing property;
Estimate the amount of interest-bearing debt an income producing property can support from existing, rather than stabilized, net operating income;
Understand the basic conflict between the primary focus of an appraisal report and the primary focus of the lender in using appraisal report information to reach a credit decision; and
Understand the essential issue of properly identifying and assessing property cash flow in reaching a credit decision.
How
to Order
Click the "Add to Cart" icon to purchase Shockproof!
Training products. Or Contact
Us for a personalized review of your credit
training needs.
Shopping Cart
Webcasts
