Pushing Dirt

If you’re a commercial real estate broker, owner, investor, or other professional and you’re not familiar with the CCIM Institute, it’s time to check it out.

The core offering of the CCIM Institute is a series of four courses on real estate financial analysis (course 101), market analysis (course 102), user decision analysis (course 103), and investment analysis (course 104).

At the bare minimum you should give serious consideration to taking the 101 course. It is taken over five full days of intense instruction, cram style. You will walk out of the course with a greater understanding of how to underwrite a real estate investment than 95% of your colleagues who know little more than how to calculate a cap rate. You will learn how to use a financial calculator. You will learn how to calculate an internal rate of return. Most importantly, you will become fluent in the language of commercial real estate financial analysis.

In my personal experience as a commercial real estate agent, this knowledge has made me the “go to guy” among the brokers of my company when they need to have a dialog with their clients about real estate values. I’m regularly brought along to help win and execute sales business.

Complete all four CCIM courses, take a test and complete a lengthy resume and application and you can earn the CCIM designation and full membership. The CCIM designation affords you networking opportunities and also lends you credibility among your peers. It’s a particularly beneficial designation to earn if you work for a “boutique” firm.

Market rent growth is as important, if not more important, than in-place cash flow. Novice buyers focus solely on barometers of the “here and now,” e.g. capitalization rates and in-place returns. Learn to make cash flow projections and calculate an internal rate of return. You can buy a fancy program from Argus or you can do it in Excel. Don’t know where to start? Take the ccim 101 class. Take all their classes for that matter. They will pay for themselves many times over if you are making a career in real estate. Doesn’t matter if you’re flipping houses or buying million square foot warehouses, it’s a great program.