Mastering the HP12C - Using the HP12C Financial Calculator (GE3)

NY State Approved for 15 hours of credit

Course Objectives

This class is approved by the Appraisal Foundation for 15 hours of Credit toward your General Certification.
Gain a working knowledge of the HP12C financial calculator with this hands-on, two-day keystroke and real estate applications seminar. Through clear step-by-step examples, develop an understanding of the reasoning and technique to solve both simple and complex investment equations.
Topics include six functions of the dollar; loan value; debt coverage ratio; nominal stated rate versus annual percentage yield; loan amortization, including principal, interest, and balloon payment; market value versus face value of a note (loan); real estate as an investment; the precepts of time value of money; discounting net operating incomes (IO) and future resale value to a present investment value; investment criteria using internal rate of return (IRR) and net present value (NPV); levered and un-levered investments (positive, negative leverage); IRR to the equity position; face rent versus effective rent; and statistical topics including mean, median, and standard deviation. Self-evaluation quizzes, an individual question and answer session with the instructor, and a glossary of terms and economic indicators commonly used by industry professionals are included.

Course Schedule

• CLASS 1
A. INTRODUCTION TO FUNCTIONS OF THE HP12C: 2 hours
Financial, Mathematical and Statistical
Modes (RPN, ALG)
Basic Arithmetic calculations
Combining Operations
Using the Memory & Percentage Key
B. COMPOUND INTEREST AND DISCOUNT FACTORS 3 hoursv Six functions of the dollar
CLASS 2
C. DETERMINING OVERALL CAPITALIZATION RATES 3 hours
Case study valuation
Direct capitalization
Discount cash flow yield capitalization
D. INCOME VALUATION COMPARISON 3 hours
Overall rate
Mortgage rate
Equity rate
Comparison of cost and sales approaches
E. INTRODUCTION TO VARIABLE / IRREGULAR CASH FLOWS 3 hours
Selecting and supporting the discount rate
Calculating internal rate of return
Final examination 1 hour

 

Who is the instructor?

Michael A. Raganelli has over 25 years of experience in the valuation, management, and financing of commercial real estate. Currently, he is currently a Managing Director with Terrace Capital LLC, a real estate investment bank with a stated objective of placing $1 billion of new commercial loans annually. Mr. Raganelli holds the MAI designation from the Appraisal Institute and is certified by that organization as an instructor. Mr. Raganelli is also the Chair of the Valuation Studies Department at the NYREI. He was appointed the Appraisal Institute's Ambassador to the Russian Federation (2004-2008), traveling regularly to that country for both educational and good will assignments Mr. Raganelli's resume includes the following positions and accreditations: - Commercial Mortgage Lender with over 13 years of experience. Portfolio lending experience with New York Life, Chase Manhattan Bank, and KBC Bank NV (Belgian). Commercial Mortgage Backed Securities experience with a NYC due diligence firm serving various Wall Street firms and Morgan Stanley. - Member of the Appraisal Institute; MAI designation awarded in 1993. - Successful Entrepreneur, past owner & operator of Raganelli & Associates, Inc. (1985-1998), an appraisal and consulting company operating in New York City. Clients ranged from local & national major banks to the Resolution Trust Corporation and the Federal Government (Government Services Authority). - Expert in bad debt and property workout analysis: Chief Asset Manager for Sylvan Lawrence Company, a New York City property owner and management firm. - Subject matter expert on the appraisal and financing of real estate: Chair, Valuation Studies, New York Real Estate Institute, 1999 to Present; Certified and Approved Appraisal Institute Instructor; Published Author: created and produced the In Layman's Terms column which appeared regularly in the New York Post from 1996 to 2001; acknowledged by New York State as an Expert Witness on Real Estate matters.

 

Where do I take this course?

New York Real Estate Institute
139 West 35th, 2nd floor
New York, NY 10018
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