06/03-06/19 RP400 Going Concern Appraising for Real Estate Appraisers Case Studies

Hosted By ASA NorCal Chapter

When
June 3-6, 2019 | 8:30am – 5:30pm

Cost
$475 - Member rate until May 3, 2019
$535 - Member rate after May 3, 2019
$550 - Non-member rate until May 3, 2019
$610 - Non-member rate after May 3, 2019

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

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

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This three-day course plus a 4th day 2-hour exam 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 (RPGC), like course RP401.  

When completing a RPGC valuation assignment with component allocations, the assignment conditions can often involve the valuation of tangible (real property and FF&E) and intangible business value components.  The course will review the conditions under which performing the valuation of an RPGC, and its component allocations, may require assist from a business appraiser or a machinery & equipment appraiser.

Using the vehicle of three case studies, the students will go through the steps often required in the valuation of a RPGC and component allocations.  The class will spend time on the fundamentals of analyzing financial statements, which includes balance sheets, profit and loss statements, and tax returns. Importance will be placed on how to normalize these statements and support income and expense projections for the entire RPGC and the allocation to each of the components.  Participants will also be introduced to the basics of machinery and equipment appraising. The focus will be on the personal property - FF&E (M&E) - used in the going concern operation. 

Participants will walk away with a useable overview and basic understanding of how to appraise an RPGC and provide an allocation to the components. All three approaches will be presented; however, little time will be spent on the cost approach as it is assumed attendees are conversant in its application.  The focus will be on the income approach, with secondary consideration to the sales comparison approach. 

There is no required order to completing the two RPGC courses. Building off the other course in this series (RP-401), this course will:  

  • Explore the types of assignments that are candidates for real property going concern valuations;
  • Apply current techniques and methodologies used in developing real property going concern valuations and allocations to its tangible and intangible components;
  • Be introduced to valuing small businesses within the context of RPGC valuation. 
  • Review the means of identifying tangible personal property, FF&E or M&E, necessary for the RPGC operations. 
  • Explore changing industry standards for defining personal property, trade fixtures, and real property;
  • Explore backdoor testing of conclusions and reasonability tests;
  • Identify and utilize available published resources needed in the valuation process;
  • Understand and be able to utilize discernment rules;
  • Addressing the lender client request for the value of “just” the real estate.

 

Course Audience

It is assumed that course attendees already have a comprehensive understanding of how to appraise complex commercial real estate as well as experience in developing income statements.

CE Approvals

ASA has received approval from the following states for 24 hours of continuing education credit, unless otherwise noted: AZ*, CA*, ID, IN, OR, WA*, WI. This course has also obtained CAP approval from the Appraisal Foundation.
*22 hours of continuing education credit.