Is it Worth Getting Your CCIM (Certified Commercial Investment Member) Designation?

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There has been a lot of discussion on BiggerPockets about whether it’s worth getting your broker’s license. Still, the question of whether to get your CCIM (Certified Commercial Investment Member) has been left mostly unanswered. I touched on what such a designation offers here, but it certainly isn’t for everyone.

What is a CCIM Designation?

A CCIM designation recognizes an individual is an expert in commercial real estate investing. Awarded by the CCIM Institute, formerly known as the Commercial Investment Real Estate Institute of the National Association of Realtors, the designation is recognized globally. The CCIM Institute educates CRE professionals.  

That is why most people with a CCIM designation are commercial real estate professionals locally and internationally. There are more than 50 CCIM chapters in local markets worldwide.

Industry leaders teach courses. Requirements vary according to the chosen membership level, which consists of the following:

• Candidate membership: This level does not require advanced degrees or additional designations. It is the appropriate level for the majority of those working in commercial real estate.
• Fast track: If you hold other commercial real estate designations, this may prove the right level. Such designations mean you are exempt from some CCIM Institute requirements due to your qualifying experience.
• University fast track: Available to undergraduate and graduate students from allied universities, this level also exempts members from certain CCIM Institute requirements.
• Academic: This level does not confer CCIM designation but does provide access to some CCIM tools.

What Type of Investor Should Consider a CCIM?

CCIM designees deal primarily with commercial real estate, which includes apartments, offices, retail, hospitality, and industrial. Very few of them do much in the residential and small multifamily spaces. CCIMs include various real estate professionals, such as commercial brokers, lenders, and investors. A CCIM is probably not worth your time if you focus predominately on smaller properties. The one exception is if, like us, you buy small properties in bulk, particularly by purchasing portfolios. On the other hand, if you are either in or aiming to get into the commercial space, a CCIM should certainly merit your interest.

This is especially true for brokers and lenders. A CCIM denotes a substantial amount of credibility in those industries. Since brokers and lenders want to build credibility with potential clients, a CCIM can be very beneficial.

Others who can benefit from CCIM designation include leasing professionals and property managers.

Advantages of a CCIM

For commercial real estate professionals, a CCIM designation holds numerous advantages with little downside.

A CCIM designation bestows credibility

In my judgment, the biggest advantage to having your CCIM is the credibility that comes along with it. As mentioned above, it is probably the most beneficial to commercial brokers and lenders, but it can also be an advantage to investors. This is especially true if you are looking to do syndications where you raise private money for the down payment and then split the equity amongst your various investors. When doing such deals, you are usually raising funds from accredited investors. These investors are generally more sophisticated and, thereby, often more skeptical. Being a certified commercial investment member can help you establish your credibility as a seasoned, experienced, and trustworthy syndicator with such investors.

A valuable education component

Of course, the education you get from CCIM course concepts can also be very valuable. You take courses in investment analysis, financial analysis, market analysis, and negotiations.

The real estate calculator they provide is quite powerful and allows you to quickly and efficiently calculate a potential investment’s net present value and internal rate of return (IRR), which are helpful metrics for larger and more complicated deals. No, you don’t need to calculate the IRR on a single-family house (not that it would do much good). The after-repair value (ARV) and estimated cash flow should be sufficient. But when it comes to larger apartment or other commercial deals, I would highly recommend looking past only calculating the cap rate. (You can find a brief rundown of the internal rate of return and net present value here.)

And, of course, the series of classes required to acquire your CCIM designation provides helpful education. You will receive training in financial analysis, market analysis, and other invaluable courses designed for the commercial real estate professional.

A great networking tool

Furthermore, having a CCIM puts you in a sort of club. You are now a certified commercial investment member. You can attend your local CCIM meetings without the designation, but having one makes you more of a “go-to” figure in your community. I’ve heard other CCIM designees note that when they enter a new market, they will often look up the CCIM Institute members around to contact first about it. This can be a great networking tool and help you get new clients or deal opportunities in the commercial real estate industry.

Membership benefits

Finally, having your CCIM offers a variety of membership benefits, such as access to their Site to Do Business for Real Estate Investors, which has tools such as ArcGIS Online and other programs, as well as tuition discounts for additional classes and the like.

Disadvantages of a CCIM

The disadvantages of getting your CCIM designation boil down to two simple things: time and money.

Costly tuition

To get your CCIM designation, you must complete four classes, each four days long and costing $1,735 as of this writing ($1,435 for members). You have the option of taking an online course, as I did. You must also complete short online ethics and negotiation training courses and take the comprehensive exam. All of this, of course, costs additional money. As of this writing, the classes and application fees add up to either $9,519 (non-members) or $7,930 (members).

Finally, an annual fee of around $695 is needed to maintain your CCIM membership.

Commercial real estate portfolio

In addition, you must also provide a portfolio of commercial real estate experience, which can be one of the following:

• Three (3) or more qualifying activities totaling $30 million or more; or
• Exactly ten (10) qualifying activities totaling $10 million or more; or
• Twenty (20) qualifying activities with no dollar volume requirement.

This commercial real estate portfolio can take some time to put together. I remember it being quite the pain. When that time is added to the online or classroom courses, you must commit substantially to get your CCIM designation.

Should You Get Your CCIM Designation?

That question is, unfortunately, one I can’t answer for you. A CCIM designation does require a substantial amount of money and time. Still, for many investors, that cost is worth it in the education component, networking opportunities, and credibility you will gain. Hopefully, this article will help clarify that choice.

Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.