05/20-23/19 RP401 Allocating Components in Going Concern Appraisals

Hosted By ASA NorCal Chapter

May 10-13, 2019 | 8:30am – 5:30pm

$475 - Member rate until April 15, 2019
$535 - Member rate after April 15, 2019
$550 - Non-member rate until April 15, 2019
$610 - Non-member rate after April 15, 2019

The cost of this course includes PDF course materials, coffee, bottled water, and snacks

Lafayette Library and Learning Center
3491 Mt. Diablo Blvd.
Lafayette, CA 94549

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This three-day course with a 2-hour exam at the start of day 4 introduces appraisers, assessors and attorneys to the concept of allocating the various components of what has come to be known as a real property going concern.   Examples of RPGCs include car washes, fueling station/c-store, lodging properties, wedding or event centers, food processing facilities, commercial nurseries, equestrian centers, etc.  The list of potential real property going concerns for which appraisal services can be requested can be very long.  A hot topic today in many states is the valuation of licensed cannabis growing facilities.

The defining concept is that the RPGC valuation process addresses the entirety of the property, M&E, and its business operation.  The assignments require support for the allocation of value to the tangible real estate and machinery & equipment (MTS) components as well as any business or entrepreneurial value associated with the intangible components.

It is a thorough, hands-on learning experience designed to provide the knowledge and understanding when to, and when not to, properly allocate/segregate the value components both from a real estate appraiser as well as from a business and MTS valuers perspective.  The course will exam when to employ the assist from a business appraiser or a machinery & equipment appraiser. Additionally, it presents allocation requirements as required by lending institutions and how to analyze their effect on value as required by USPAP.

There is no required order to completing these two AQB approved courses. Building off the other course (RP-400) in this series, this course will address the following:

  • Explore the characteristics that define a real property going concern.
  • Consider an RPGC assignment from the real property appraiser’s perspective, as well as a business valuator’s or machinery and equipment appraiser (MTS) perspective;
  • Recognize their obligations to current laws, USPAP, and other regulations including understanding ASA BV standards;
  • Distinguish the differences between the valuation of the ownership entity (business) and the RPGC owned by that entity;
  • Be introduced to valuing small businesses and cover all three approaches with the current methodologies used by business appraisers;
  • Review the literature and differing ideas on this important topic and explore sources of data to be relied upon in the RPGC valuation analysis;
  • Addressing the lender client request for the market value of “just” the real estate.

Course Audience

This course is for students who have a basic understanding of how to appraise complex commercial real estate such as fueling station/c-store, car washes, lodging properties, nursing/assisted living facilities, etc.

CE Approval

ASA has received approval from the following states for up to 27 hours of continuing education credit: DE, ID, IL, IN, KY, MD, NE, NJ, NV, OR, PA, TN, VA, WA, and WI. Applications are pending for AZ, CA, NV, and WA. Please note - some states may not accept all 27 hours. Contact ASA or your state appraiser board for more information. This course has also obtained CAP approval from the Appraisal Foundation.