CCIM 101 Preparation
Hey guys,
So I am a recent college graduate with very limited financial knowledge (political science major). I am seeking to break into commercial real estate. I already have my regular license. At the instruction of several people in the industry, I have registered for the first CCIM class, 101- financial analysis of commercial real estate class in February in Orlando. I am doing so in order to gain a working knowledge of the investment side of the business. Given my background and the difficulty of the course, I am wondering how to go about preparing for this class and what to expect from it. Any advice would be helpful on what to expect from it, and how to be successful in the concepts it teaches you. Thanks
PM me. I have my CCIM.
CCIM isn't a way to break in. You can't even officially get the designation without a fair bit of experience.
The reason I am doing it is mostly to gain the knowledge I would need in brokerage because I am not a finance major
That doesn't make it a good option, just an expensive way to learn. And again, you can't put in on your resume until you have ACTUAL experience(because you wont have the designation). Not trying to be debbie downer, it's just the truth. There are a million posts here about networking into firms and how to break into brokerage, I'd suggest reading those. Think about a modeling course(BIWS, REFM, whatever), you can get some decent excel skills for a LOT less than the cost of CCIM courses. Read this website: http://astudentoftherealestategame.com/
Brokerage(I'm assuming that's what you're interested in because those are really the only people with CCIM's) is a relationship business. Half the people, if they even have degrees which is firm and market dependent, have sociology BA's or whatever. Brokers aren't architects and engineers. Point is, depending on your area of brokerage, any technical skills you have are pretty close to irrelevant. They just aren't needed. What is needed is a solid understanding of your market, an ability to meet people and build relationships, and you have to be able to capitalize on those relationships and turn them into deals.
All of this is assuming you're looking at brokerage. If not, what are you trying to do with your life? FYI Brokerage is an ideal place to start and learn the business, nobody knows what they really want when they're 22. Learn the business, figure out what you want, and then either try to lateral through networking or go back to a MRED/MBA program and do it that way. There are a million ways to get where you want to be.
I haven't taken any CCIM classes but a number of the brokers in my firm have. 101 is probably the best, and only one you should take at this time. You cannot earn the designation until you've done about $5mm in transactions (1-2 years) so no point in going further than 101.
That being said, brokers rarely know about IRR/ NPV etc. Unless you're working with a large team, most brokers work in leasing and on smaller investment sales. Very rarely do brokers forecast out farther than a year or two on a property. Although incredibly useful to know, you're not going to win a 4k sq ft leasing assignment because of it.
Your most important terms starting out are going to be.
Cap Rate Gross income/ expenses NOI Cash on Cash Return Price per square foot Rent Per square foot Net Lease Gross lease Leverage Cap rate and cash on cash return Pro forma: NOI, Rent PSF
Learn these backwards and forwards.
Leverage cap rate?
I was typing quicker than I could think, Leveraged cash on cash return is what I meant
I was also a lib arts major and the way I did it was sell my research/writing skills to get into a brokerage research role. After that you can build relationships with brokers at the office and they can help you work your way to wherever you want to be in the industry.
Like others said, do not count on CCIM being a strong driver for your resume. If you've never worked on a deal before, it won't matter. For conceptual learning: I would reccomend propertymetrics.com and c-loans.com. For financial modeling, save yourself the money and watch YouTube videos. Since it appears that you are already signed up for the CCIM course, make the most out of it, try to get some contacts while you are there. Definitely put the class on your resume (small chance it might catch someone's eye).
My only other advice is to choose a market you want to work in and study up (trends, economic drivers, big players, market challenges, etc.) and build a network (coffee meetings, emails, etc.).
Make sure to list it as "CCIM Candidate," that's what most of my friends do even if they had only taken the one class 2-3 years ago.
Poli Sci major here too-- did the CCIM 101 and I am working on my license (did the reverse route haha)
Sure, it won't get you a job right away BUT
-You can and should put the certificate on your resume. It shows that you are interested in the subject; passion can and has outweighed experience when applying for a job. You are putting up a nice amount of money to self-study something that interests you.
-It is very useful knowledge depending on where you are looking to get into CRE. It is a possibility that the first job you have in CRE will be a job that anybody on the street could apply for, but having the knowledge and passion will offset you from others and it will show.
I did not have any problem getting into it as a Poli Sci/History major. But it is self-study so you have to learn how to learn if that makes sense.
I hope this helps.
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