Real Estate Certification Guide
Details of Real Estate and Finance Certifications with Feedback from Industry Leaders
CCIM (Certified Commercial Investment Member)
The CCIM designation is awarded by the CCIM Institute and is most popular within the commercial brokerage and property management community. The curriculum focuses on real estate investment analysis, ethics, and negotiation.
Earning the designation requires completion of 6 courses and 2 credits in electives, submitting a satisfactory portfolio of deals worked on, and passing a comprehensive examination. For graduates of recognized university real estate programs, three of the six courses in finance and investment analysis may be waived. The courses are offered in a flexible classroom based or self-paced online format. The total cost of program averages about $10,000 and the time commitment ranges from 10-24 months.
According to the CCIM Institute, there are currently 15,000 professionals worldwide who have been awarded the CCIM designation and 5,000 more that are in the process of completing the requirements.
Industry feedback: In our survey of industry leaders the CCIM was considered worthwhile designation to hold. The curriculum of 4 finance courses was ‘academically light’ for some respondents, while others voiced concern over the total cost of the program. The respondents were all in agreement that the continuing education and networking resources provided by the CCIM Institute were unparalleled and that the institute has done an excellent job of marketing and maintaining its brand.
For more information visit the designation page:
http://www.ccim.com/info/ccim-designation-requirements
CRI (Chartered Realty Investor)
Launched in 1999, CRI designation was developed by industry leaders with an academically rigorous approach in mind. The curriculum is designed to cover a wide range of industry topics to ensure basic competence in financial analysis, taxation & accounting, underwriting, due diligence, capital markets, asset management, and management of various asset classes e.g. CMBS and derivatives. The CRI charter holders hail mostly from the institutional and investment banking community.
Earning the designation requires completion of Level I & II examinations. Passing Level I qualifies a candidate as a ‘CRI associate’ and passing the Level II ‘Charter’ exam completes the testing requirements. An undergraduate degree and a minimum of two years of relevant work experience are also required. The undergraduate degree requirements can be substituted with six years of relevant work experience. The total cost for obtaining the designation is approximately $2,000 and the time commitment ranges from 12 to 24 months.
Industry feedback: In our survey of industry leaders, the wide ranging curriculum, tiered exam structure and 'knowledge based' approach made the CRI one of the most respected designations. Some respondents did express frustration with the CRI Society’s marketing and outreach efforts, but several senior respondents expected the designation to gain prominence-especially within the institutional 'buy side' community in the coming years.
For more information visit the designation page:
http://crisociety.org/about-cri/what-is-a-cri-r-charter-holder/
CMB (Certified Mortgage Banker)
Awarded by the MBA (Mortgage Bankers Association), the CMB designation has been around for almost four decades. The designation is focused on the mortgage finance industry and offered in two primary flavors; residential and commercial. The designation is most popular with loan officers and lenders within the retail banking community.
Earning the designation requires satisfaction of education, experience and industry participation requirements. The MBA uses a point system to determine eligibility by awarding different number of points for education attained, years worked and industry events attended. The typical candidate will have an undergraduate degree, has undertaken one or more of the courses offered by the MBA's School of Mortgage Banking, has attended industry events, and has a minimum of 3 years of industry experience. Candidates are required to pass a six hour written examination and an oral exam administered by a panel of local CMB designation holders. The cost for the designation is approximately $3,500 for those holding an undergraduate degree and the time commitment ranges from 10-24 months depending on exam and course scheduling.
Industry feedback: In our survey of industry leaders the CMB was considered a valuable deisgnation for mortgage professionals at retail banking establishments and financial intermediaries. Respondents classified the designation as limited in scope to mortgage finance industry, but lauded the affiliation with MBA and the research and resources it makes available to designation holders.
For more information visit the designation page:
http://www.campusmba.org/CertificatesandDesignations/CertifiedMortgageBanker
MAI (Member Appraisal Institute)
The MAI designation is the gold standard within the real estate valuation industry. MAI's obtain the designation after meeting extensive education, testing and experience requirements. Awarded by the Appraisal Institute (AI) the designation represents experience and an advanced knowledge base. It remains one of the most valued credentials within the real estate industry.
Earning the designation requires commitment to the appraisal and valuation profession. Candidates must have been an associate member of the Appraisal Institute for at least 1 year prior to applying for an MAI designation. Candidates must undertake a qualifying state appraiser course and subsequent exam. Specific valuation courses should also have been attended and successfully completed. Candidates are required to pass a comprehensive exam administered by the Appraisal Institute (AI) and complete 4,500 hours of specialized experience over a 36 month period. Candidates are also required to have earned a bachelors degree as part of the education requirement (some experience can be substituted for credits). The cost for designation can range from $6,000 to $10,000 over the 3-4 years it takes to earn this designation.
Industry feedback: In our survey of industry leaders the designation was widely respected and considered the benchmark against which all other valuation professionals are measured. Respondents considered the MAI designation a 'must have' for professional appraisers and those working within valuation departments of lending institutions and securitization outfits.
For more information visit the designation page:
http://www.appraisalinstitute.org/membership/Mai_Sra_sum.aspx#MAI
CFA (Chartered Financial Analyst)
The CFA charter is the most respected credential in the finance industry. It is most commonly held by investment bankers, financial services professionals in institutional settings. The curriculum for the exam covers virtually all topics in finance. While only a small segment of the exam is devoted to alternative (real estate) investments, the knowledge base covered is wide and deep enough to qualify charter holders to competently function within any financial services environment.
Earning the charter requires passing three exams; Level I, II and III. Candidates may only take one exam each year, making the minimum time required to complete the charter about 3 years. The CFA Institute provides basic materials from which to study for as part of your enrollment fee for the exam, giving candidates the option of a self-paced course of study. Candidates commonly report allocating 250 hours of studying per exam. All three exams are considered challenging-pass rates for Level I for example routinely average 28%. There are a variety of supplemental study aides and classroom instruction options available from third party providers. The total cost of the obtaining the charter is approximately $5,000.
Industry feedback: In our survey of industry leaders, the CFA charter was held in high regard by all surveyed. The charter was considered a career ‘trajectory booster’ for real estate professionals in financial services settings. Respondents considered the financial analysis, economics, fixed income and portfolio management components of the course of study to give candidates the financial fluency to perform in a wide variety of roles within the financial services arena.
For more information visit the designation page:
http://www.cfainstitute.org/cfaprogram/process/Pages/becoming_a_charterholder.aspx
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