Thoughts on CRI (Chartered Realty Investor) designation?

I've heard plenty about CFA, CCIM, etc...but don't see much talk about the CRI designation and I'm curious if anyone has any insight or opinions on it. I'm currently in brokerage (4 years) and trying to get into an acquisitions role with an owner/developer. My bread and butter deals are typically user-sales and leasing.

Not very much investment sales experience, so my experience and resume lacks a bit in the financial analysis department. I've interviewed before with a few owner/developers and made it as far as the final round of interviews, but have typically lost the position to another candidate who has more analyst experience than myself. I'm trying to find something to help bolster my resume and set me apart from other candidates.

I've done the REFM certifications Levels 1-2 (currently working on Level 3), but I'd would like something with a little more purchasing power behind it from the eyes of an employer. I'm hesitant of CCIM since it requires 5-year of portfolio tracking and I'd like to make my exit from brokerage sooner than that. Any feedback is appreciated! This forum has always been a great resource for me.

 

@CRE SC That's what I've gathered as well, just from my own research. I've read a lot of old posts here about the CFA, and the majority of the opinions I read is that it's impressive, sure, because of the time commitment it requires. However, it only has maybe 5-10% of real estate material. Compared to the CRI, which is entirely real estate oriented. CCIM I would see as beneficial if my ultimate goal was to remain a broker.

 

geology rocks I haven't looked too much into the CAIA, but I've heard of it through my searches of previous posts. From those posts I've gathered that it's more focused on hedge funds, commodities, structured products, etc and only 5-10% real estate material. I was under the impression that it's more aimed towards those who are on a hedge fund career trajectory, rather than real estate. Thanks for the suggestion though, I'm definitely going to do some more research as those posts I've read are like 3 years old, so gotta take it with a grain of salt.

 
Best Response

Never heard of it, wouldn't waste my time.
As has been mentioned, CFA is your best bet if you're hyper-focused on getting letters after your name. Then the CAIA. Neither one is going to teach you a ton about real estate, but both will likely teach you a ton. I am pursuing the CFA for knowledge's sake not because I think it will get me a raise, or because I think Blackstone will suddenly be knocking on my door.

Candidly, any two-bit broker can get a CCIM. It is a waste of time and dollars to pursue it. If you're leasing retail in Bumblefuck, MS then maybe it'll help you with national retailers. Otherwise, go read a book or pick up the phone and call someone. I can't think of a single instance in which I've been like, "woah, that guy has his CCIM, the world must be swinging from his nuts!"

That's one cynical asshole's opinion, and that plus two bucks will get you a cup of coffee.

 

The CRI designation is not currently widely known within the industry, but should gain more recognition in the next several years due to its new partnership with the Mortgage Bankers Association. When the CRI Society was founded in 2001, no real attempts were made to heavily market the CRI designation. The MBA plans to do this going forward.

A CRI designation is like saying you have a CFA, but only in commercial real estate. It is not just textbook materials that you can learn like the CFA. There is more emphasis on real estate experience in order to pass it. You could do it if you don't have much real estate experience, but you will have to put in a lot of hours studying/researching. It is a very difficult examination. Took me three attempts to pass the CRI Associate examination with my limited commercial real estate experience, but very satisfying in the end.

 

Are you by chance studying for Level 2? I finally bit the bullet and signed up -- if only because I felt extremely guilty that I started something I should finish, regardless of whether the designation goes anywhere in the future.

 

Congrats on pursuing the Level 2. It is no doubt an even more difficult examination than the Level 1 (and that was a tough exam too). I just passed the Associate examination last year so it's too early to start on the Charter. I'd like to gain more real estate experience before biting the bullet as you did. Maybe in another year or two.

Best of luck on the Charter!

 

As an L3 candidate, I'll tell you right now that the time and effort necessary to get the CFA massively outweighs the benefit (if acquisitions is your goal). Aside from having almost no material overlap, 95% of the industry has never heard of it, and those that have likely began their careers in another industry. Real estate is just one component of the Alternative Investments chapter which is worth (I believe) 10% total of the exam. There will be some conceptual overlap I guess in rate analysis (even then, not really), but the brain damage you will incur will not be worth it.

If you're already getting in the door and making it to late stage rounds, it sounds like your lack of letters or pedigree is not the problem. I broke in with absolutely zero industry experience (come from trading / oil background) by being handsome and doing the following - download this or a similar model: https://www.adventuresincre.com/multifamily-apartment-acquisition-model…

Now go to LoopNet or something and find an OM or brochure that shows financials for an apartment building in the market you want to be working in. Avoid Section 8 / Affordable type stuff for now because HAP contracts and all that add like ten more layers of complication. Practice inputting all the data into your model and notice how all the outputs change. After doing it enough times you'll learn how certain assumptions affect various outcomes, and where certain figures or numbers are located in the financials. Real estate DCF's are as basic as it gets - as an investor or even broker, you really just have to be able to justify to yourself why the numbers are the way they are (or why they aren't and what needs to change). If you're tying your growth rates to inflation, say why or why not. If you come from a real estate background I am sure this is no problem.

Next I would practice doing waterfall modeling, which will be your intro into JV investments and help you understand how REPE works. The GP/LP relationship is important. They probably have templates on that same website, if not maybe I can shoot you a few. If you can understand and comfortably talk about your models, assumptions, market trends, and goals, you are set. Cash on Cash and Total Return metrics are key. Market trends and current/future legislation are incredibly important for development. Boom, just saved you like three years. If there's one thing I've learned since recently starting in real estate, it's that being incredibly stupid and successful are not mutually exclusive, so don't try to impress anyone.

 

CaR That's some great advice, thank you! I've been doing REFM outside of work as of late. Just finished up the Level 3 class on JV Partnerships and Waterfall modeling. There's a few more I can do dig further into including a few development and acquisition financial models I plan to purchase. Thanks for the link, I'll check that one out as well, especially since it's "pay what you can". For the most part, I've got the basic understanding. However, I need the practice, which I don't get in my current role. OM's come across my desk daily. I'll start practicing modeling them out more often. Thanks for the advice.

 

Having done CRI Level 1, the CCIM materials and classes I have seen are a joke in comparison of rigor / skill testing. CCIM is a professional network fraternity with classes to earn it money. If you are a broker, I can see getting it. Anyone else, I am not so sure. CRI won't get you recognition but you will learn things and how to think about real estate -- and critical thinking skills are what gets you recognition in the end, not letters after your name.

 

I took the CRI Level 1 a few years ago and thought it was a great experience. It was intense in terms of the amount of questions given in 4 hours. I barely passed and I'm an experienced professional. The downside: The study and preparation materials. That is why I have been waiting for the program to improve under Mortgage Bankers Association before I take Level 2. MBA provided some leeway for Associates who were waiting for the transition from the CRI Society and AMP to the MBA's on-line learning program. The great thing about the program is it is more practical than CFA and more tailored (to real estate).-- far more than CAIA too. Things on Level 1 and 2 are things I run into at work in investment all the time. Admittedly, the "good" thing about the lack of study programs, etc. is you actually have to know the concepts in actual real estate context -- there is no professional coaching help you pass the exams like CFA -- no "teaching to the test." The program provides the outline of the concepts that surveyed real estate executives determined are important, but you end up doing extra research and looking for other sources and learn a lot that way. It truly does force you to teach some concepts to yourself - like you will in the real world. That said, it is still always helpful to have exams to test yourself. Therefore, the only reason I haven't finished is the frustration with CRI Society and MBA in not adequately preparing practice tests for Level 2. This designation could be so much more if MBA can get it going again. AND, as suggested by the questions in the post, MBA needs to advertise, advertise, advertise the designation!

 

I haven't signed up for Level 2, but I've had direct discussions with the CRI Society and MBA about getting the materials they cite in their curriculum into one place. My understanding is that they now provide that on the MBA website when you sign up. I searched out many of the materials myself and told them that some were out of print. As I maybe mentioned, they have a lot of clean up to do, which MBA is trying to do. Contact Gail Griffith at MBA and she can fill you in on what is available now online. They just revamped it around June or so of this year. But again, there is no "teach to the test" {yet} on this program so experience also counts, especially Level 1. Pursuing your own sources is key because sometimes you'll find other sources that explain concepts better. But I would say the same happens with CFA materials. Some explanations are good, some are terrible.

 

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