RP400 Going Concern Appraising for Real Estate Appraisers - September 2022

Class Date/Time

Wednesday, September 7, 2022 - Friday, September 9, 2022
9:00am-6:00pm Eastern US

Online Registration Includes

• One registrant login to the live sessions
• Electronic course materials*

*All course materials included with your registration are PDF download only items made available to students prior to the start of the class and are not for resale or distribution. All downloadable materials are accessible via your education dashboard (login required). Once eMaterials have been posted for download, the class is no longer refundable.

Class Schedule

All times are Eastern US

Session 1 - Wednesday, September 7 -9:00am-6:00pm
Session 2 - Thursday, September 8 - 9:00am-6:00pm
Session 3 - Friday, September 9 - 9:00am-6:00pm

Please Note: Partial credit will not be awarded for this offering. Students must participate in all three (3) sessions to complete the course and receive full credit. The sessions will not be recorded and/or made available after the class.

Continuing Education (CE) and State Approvals

This course provides 22 CE instructional hours and 2 exam hours.

RP400 is currently approved in CA, DE, GA, FL, IL, IN, ME, MO, NJ, NY, NV, OR, PA, TN, WA, and WI. If you're licensed in a state not listed here and would like to attend this class, please email education@appraisers.org.

Please Note: Not all states allow classroom-approved courses to be taught online. If you plan on attending this class virtually and would like to receive state CE hours, please check with your state's appraisal board to make sure you will receive credit for attending.

Course Description

This 3-day course offers real estate appraisers an introduction to the basics of appraising real estate properties with a business component also known as "Going Concerns". Examples of such properties include single-location, free-standing, real estate-based operations such as fueling stations/convenience-stores/car washes, senior housing, and lodging properties.

This introductory course identifies the differences between performing a business appraisal and appraising real estate with a business component emphasizing the Going Concern Valuation when the primary value is the real estate. The course will also cover the fundamentals of reviewing financial statements with a focus on profit and loss statements. Emphasis will be placed on learning how to normalize these statements, how to recognize when the assignment goes beyond the real estate appraiser's expertise, and when it is appropriate to contract with a business appraiser (or a machinery and equipment appraiser) to assist. Additionally, students will be introduced to the basics of valuing the personal property (FF&E and M&E) used in the operation of the property types covered in this course.

Through the use of case studies, students will obtain an overview and basic understanding on how these particular property types are appraised. All three approaches to valuation will be presented; however more attention will be given to the Income Approach, and the Sales Comparison Approach. The appraisers' obligations to USPAP, FDIC, OCC, and the SBA are also highlighted.

Student Note: The material, curriculum, and instruction methods used in this course are designed at the introductory level. This course teaches real estate appraisers how to appraise the "Going Concern"; it does not teach real estate appraisers how to appraise a business or the business component of a Going Concern.

Instructional Methods

Class lecture and case study reviews.

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.

Learning Level

Fundamental

Upon completion of this course, students will be able to:

• Understand the concept of a going concern valuation, both from the real estate appraiser’s perspective, a business valuator’s perspective, as well as the machinery and equipment perspective;
• Recognize their obligations to current laws, USPAP, and other regulations including understanding ASA BV standards;
• Distinguish between business appraising and real estate appraising;
• Know the current terminology surrounding going concerns of operating companies primarily depending on RE as an income producing asset;
• Understand the fundamental principles underpinning going concern valuations;
• Develop applicable analytical skills;
• Understand and be able to utilize discernment rules;
• Determine the types of properties that are candidates for going concern valuations;
• Appreciate current notions and ideas about going concerns from published authors;
• Apply current techniques and methodologies used in developing going concern valuations;
• Generally understand valuing small businesses as well as all three approaches to valuation with the current methodologies used by business appraisers, and an emphasis on when to employ the assistance of a business appraiser or a machinery and equipment appraiser;
• Support their value conclusions in a report;
• Explore backdoor testing of conclusions and reasonability tests;
• Identify and utilize available resources.

eMaterials

All course materials included with your registration are PDF Download Only items made available to students prior to the start of the class and are not for resale or distribution. All downloadable materials are accessible via your Education Dashboard (login required). Once eMaterials have been posted for download, the class is no longer refundable.

Accessing eMaterials

eMaterials are provided electronically in PDF format and posted to the class within the Education Dashboard for all registrants to securely access prior to the start of the class. Attendees should come to class prepared with an electronic or printed copy of all eMaterials to use as a reference. OnDemand course registrants receive access to materials immediately following registration. 

PDF course materials are presented in color, are bookmarked, and comment enabled. When opting to print downloaded materials, it is recommended that personal print settings be adjusted to print in black and white (or grayscale) and consider printing double-sided on recycled paper.

Certificate of Completion

Please allow 5-10 business day following successful completion of the course or final exam to receive a formal status notification and access to a certificate of completion. The certificate will be available to view and/or download from within the class listed in your Education Dashboard.

ASA’s Educational Foundation recognizes students who choose to invest their time in appraisal studies by providing assistance to students demonstrating a financial need. Please visit the Educational Foundation's webpage for more information and to download an application.