Step 2: Qualifying Your Transaction
Active Managers of Commercial Investment Real Estate
Are responsible for overseeing or managing at least three associates who complete commercial real estate activities. This may include Managing Brokers or Corporate Supervisors.
| a. |
Volume must be documented and verified along with documentation of material participation showing active management and involvement in each transaction. |
| b. |
Multiply the number of associates you manage by $5 million and then
multiply the result by 75%. For Active Managers who managed 10 or
more associates, candidates are to use 10 associates (maximum) as the number
of associates in completing this calculation. |
| c. |
Minimum of 15 or more qualifying transactions equal to or greater
than the dollar amount derived in (b) above |
| d. |
Substantiations of position and number of associates are required. |
| e. |
Documentation is required as indicated in item #4 above the "Required Contents" section. Include work product showing use of CCIM Skill sets (i.e. APOD, IRR, Cash Flow Analysis, Lease vs Own, etc.) for each activity. |
| No of Associates |
Total |
75% |
| 3 |
15,000,000 |
11,250,000 |
| 4 |
20,000,000 |
15,000,000 |
| 5 |
25,000,000 |
18,750,000 |
| 6 |
30,000,000 |
22,500,000 |
| 7 |
35,000,000 |
26,250,000 |
| 8 |
40,000,000 |
30,000,000 |
| 9 |
45,000,000 |
33,750,000 |
| 10 |
50,000,000 |
37,500,000 |
Active Manager Category may include the following professions:
- Real Estate Asset/Portfolio Managers involved in commercial real estate transactions.
- Corporate Real Estate Officers or Managers involved in commercial real estate transactions.
- Pension Fund or Insurance Investment Managers overseeing commecial real estate transactions.
- Supervising or Managing Brokers of commercial real estate transactions.
Commercial Investment Real Estate Active Advisor
| a. |
A minimum of $500,000 in gross (commercial & investment) fees earned directly by the candidate
and generated during the proceeding five-year period. (Such fees must be paid directly to the candidate or candidate's company) |
| b. |
Income must be derived from completed and qualified transactions as defined in the "Qualifying Activities Requirements" section. |
| c. |
Active Advisory category can include the following professions: |
•
Exchange Facilitators
• Accommodators
• Tenant In Common Sales Representatives
Candidates must supply documentation for each transaction which contributed to the total $500,000 gross fees earned. Documentation must include copies of your work product and use of your CCIM skills to analyze different properties along with verification of fees received per closed transaction. Referral fees are not allowed. Include a copy of the property deed and always identify your material participation.
There must be a minimum of 10 transactions regardless of volume. Include work product showing use of CCIM Skill sets (i.e. APOD, IRR, Cash Flow Analysis, Lease vs Own, etc.) for each activity.
Sale/Purchase/Exchange
- Qualifying activity: Sale or transfer of title to commercial or investment real estate, as set forth herein, that involves a deed.
-
Land including but not limited to properties such as a ranch, timber or farm is an acceptable qualifying activity as long as the transaction is not considered solely as a business transaction (such as a dairy farm) and the underlying real estate is held for investment purposes, in compliance with IRS Code 1221 and/or 1231. The real estate is always the underlying factor in the transaction, not the existence of any business transaction. If the raw land is considered to be a speculative investment hold transaction, substantiation of such future growth or change in use should be provided. Documentation of the expected changes to the property should be included; examples of documentation would be an aerial photograph to show the path of growth, supporting demographics, etc.
- Volume: Determined by value of property conveyed.
- Substantiation: A copy of the recorded and signed
deed or a closing statement signed by all principals or, in escrow
states, by the escrow officer or other title company official, and
the candidate.
Only submit pages that include significant elements:
– Legal description of the property.
–HIGHLIGHT YOUR SIGNATURE and proof of all material participation.
– Any other pertinent pages that document your role with examples of CCIM skill sets (i.e. APOD, IRR, Cash Flow Analysis, Lease vs Own, etc.)
Commercial Mortgage Financing of Commercial Real Estate
Lender or Mortgage Broker Candidates who are directly involved in the origination, brokerage, and/or underwriting of loans on completed commercial or investment real estate, as set forth herein, may qualify.
- Qualifying activity: Closed first-position loans
on qualifying commercial investment real estate property.
- Volume: Determined by value of financing. Include work product showing use of CCIM Skill sets (i.e. APOD, IRR, Cash Flow Analysis, Lease vs Own, etc.) for each activity.
- Substantiation: Copy of the signed loan documents,
closing statements, and mortgage/deed of trust.
- Include work product showing use of CCIM Skill sets (i.e. APOD, IRR, Cash Flow Analysis, Lease vs Own, etc.) for each activity.
- Candidates who have applied for and received or acquired loans for their own benefit or for the benefit of an entity in which they are employed or involved do not qualify. Secondary or any underlying positions of commercial real estate and Assumption Loans do not qualify.
Commercial Real Estate Consulting
- Qualifying activity: Performance by a fee consultant
relating to the Transfer, Leasing, or Development of qualifying
property where a complete
consultant’s report, including fincancial analyses, was
prepared
and compensation was received. To qualify, all consulting activities must be
at
arms-length, without conflict
of interest.
- Volume: Determined by the value of the project.
- Substantiation: Copy of the complete consultant’s
report, commentary on course of action taken following consultation,
submittal of the consulting/independent contractor agreement, and copy of the paid bill
for services
for
consultation.
Commercial Real Estate Development
- Qualifying activity: The development project must be completed (built), not proposed.
- To qualify: Completed developments, must
result in substantial change in character or the use of property,
that
can be fully documented and analyzed.
- Volume: Determined by the substantiated present value of the
completed development.
- Substantiation: The formal approval documents
or permits, site/development plans, evidence of actual closing(s),
completed property transfers with a deed, and/or third party appraisal
showing the present value
of the completed development.
Commercial Investment Real Estate Lease
- Qualifying activity: Completed and closed leasing
transactions of commercial (office, retail, and industrial) real estate, with a lease term of one year or more.
- Volume: Determined by gross or the base value (base rent) of the lease signed
(exclusive of automatic renewals, options, and separately billed taxes, insurance and operating expenses, etc.) Example: 3-year
lease @ $10,000 rental/year = $30,000 volume. Volume must be calculated by candidate or candidate must provide a worksheet showing how the volume of the rental was calculated & highlight the rental figures in the lease.
- Substantiation: Fully executed copy
of the lease. Again, only submit pages that include significant elements: legal
description of the property, the agreed-upon lease amount, signatures
(HIGHLIGHT YOUR SIGNATURE),
and any other pertinent pages that document your role.
- While automatic options and renewals do not qualify,
substantially renegotiated leases or renewals that are materially
changed from the original lease may be accepted. Submit copies of
both leases and highlight changes.
- Residential leases, including Apartment leases, do not qualify as activities for the portfolio. Apartment and all residential leasing managers do not qualify.
- The Leasing of self storage units, Billboards, Boat slips and similar activities do not qualify.
Residential Investment
All residential investment leases, including Apartment leases, condominium and student housing, do not qualify as activities for the CCIM portfolio of qualifying experience. Apartment and all residential leasing managers do not qualify for the CCIM portfolio of qualifying experience.
Qualifying Residential Investment Properties are defined as:
The Sale, Purchase, or Exchange of any residential property of three units or less held solely for investment purposes would qualify provided that it meets all of the following criteria. If you cannot supply all the documentation as listed, do not submit the residential transaction.
- Properties that are not owner occupied
AND;
- The property must be professionally managed and a management contract must be submitted AND;
- For all qualifying residential investment properties, substantiation of a written lease for the property must exist and must be submitted AND;
- A property where financial analysis has been used in the marketing of the property. You are required to include work product showing use of CCIM Skill sets (i.e. APOD, IRR, Cash Flow Analysis, Lease vs. Own, etc.) in the marketing of any residential investment property AND;
- A property where the owner filed an income tax return showing income, expense, and depreciation for the property AND;
- Notarized or similar documentation must be provided that substantiates the property as non-owner occupied investment. (In the US, copies of Schedule E compliance with the IRS Sections 1221 or 1231 must be provided) AND;
Any residential investment property submitted must qualify either under IRS Section 1221* or 1231*.
*Section 1221 - This asset is a property held primarily
for long-term appreciation in value versus current income, such as a
semi-rural site purchased and held for future appreciation as a community
expands.
*Section 1231 - This asset is a property held primarily to produce
income for use in a trade or business, such as a retail store, office
building, apartment building, or warehouse held as a rental property
or a user property.
Substantiation: Fully executed copy of the lease to qualify the residential investment activity. Only submit pages that include significant elements: legal description of the property, the agreed-upon lease amount, signatures (HIGHLIGHT IMPORTANT ELEMENTS: TERM, RENT, YOUR SIGNATURE, ETC), and any other pertinent pages that document your role.
Note: All residential leases are non-qualifying activities and are only used for proof that a residential property is an income producing investment. Hotel leases, Apartment leases, condominium, single family or multifamily leases are not qualifying activities.
All residential investment transactions must meet all of the above residential investment criteria.
Non-Qualifying Activities
Specifically excluded from qualification are:
- Mortgage financing on residential property of
less than four units.
- Apartment and Leasing Managers
- Property Management Duties
- Appraisals
- Land: sales of less than four single-family unimproved
lots
- Transactions in which the candidate did not have
material participation.
- The sale or purchase or exchange of personal residences
- Construction/Building, Space Planning, Remodeling of commercial or investment real estate
- Referral fees from any source including commercial real estate
- Secondary or underlying loans of commercial real estate
- Assumption Loans
- Leasing of self storage units
- Leasing of boat slips
- Leasing of billboards
Questions About Qualifications
Where there is a question of whether your specialization qualifies for
the designation, refer it to the overall principal: There must be substantial
involvement with real property of a commercial and/or
investment nature.
As a standardized means of assessing that your experience qualifies for
the designation, please follow the guidelines found under Required
Contents. If you are unable to do
so, provide as much documentation and explanation as you can. Your portfolio
needs to clearly identify a character and level of activity consistent
with experience requirements applied to all other candidates.
The following factors will be taken under consideration:
- Years of experience or business activity.
- Nature of position or assignment and type of
responsibility.
- Evidence of achievement in specialty (i.e.,
corporate review, advancement, professional designation(s), advanced
degree, special recognition).
- Volume or quantity of work.
- Samples of actual work product of each activity.