Registration
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Course Description
This three-day course with a 3-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. 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.
Instructional Methods
Methods include lectures, discussions
and individual/group exercises and assignments.
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.
Additional Information
- Participants will be required to read chapters prior
to each class day.
- Throughout the course, students will apply
various methods and techniques to case studies dealing with appraising a going
concern.
- The course concludes with a four (3) hour exam.
- A financial calculator and knowledge of how to use it is
required for the course.
-
Appraisers are expected to have the requisite experience in commercial real estate
appraising.
- The course was developed from the book Going Concern
Valuations for Real Estate Appraisers, Lenders, Assessors, and Eminent Domain
Professionals© written by L. Deane Wilson, MA, ASA and Robin G. Wilson, MAI.
- This course does not qualify participants as business appraisers and does not teach business valuation
in a formal manner.
-
This course does
teach how to allocate/segregate the various components inexorably connected to the real
estate.