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Course 402 – Introduction to the Income Capitalization Approach

Course Number: C402 - Online
Course Title: Introduction to the Income Capitalization Approach
Course Level: Beginning
IRWA Credit Units: 8 QEU / CEU*
*QEU (qualifying education units) and CEU (continuing education units)
Prerequisites: Not applicable
Regular Price: $265 USD for members / $330 USD for non-members
Sale Price: $165 USD for members / $230 USD for non-members

Course Description
This course introduces income capitalization approach, which is a method of evaluating an investment by estimating future cash flows and taking into consideration the time value of money. This approach is presented in a concise, easy-to-understand format using examples and case studies to teach participants how to apply income capitalization in a variety of situations.

  • An intermediate course that can be applied towards continuing education and recertification credit.
  • Specialist: An elective for the R/W-AC program.

  • The relationship between the valuation process and the income capitalization approach
  • The applicability and reliability of the approach
  • The characteristics of direct and yield capitalization
  • The components of direct capitalization (determining gross income, estimating vacancy and credit loss, calculating effective gross income, estimating expense and estimating value)
  • Capitalization rate development
  • Determining just compensation

Course Tuition includes
Participant Manual (in PDF format; available for download)

Required Material
Financial calculator

Who should take this course
This course is designed for right of way professionals who are in the appraisal field.

Anytime you purchase an online class at IRWA University, you have one year from the date of purchase to complete your class. After that time, the class will no longer be accessible. Your progress is saved, however, it is highly recommended that you finish the class as soon as possible from the date of purchase to ensure high retention and application rate of knowledge and skills learned.

All participants will receive a total of 2 attempts to pass the exam with a score of a 75% or better. If a passing grade is not achieved by the second attempt, the participant must re-purchase the class if he or she wishes to take the exam a third time. Please note, IRWA online classes are not approved for State QE or CE credit.