Portfolio of Qualifying Experience International Introductions Attendees Who are you? – What do you do? Investment/Commercial Land Commercial Leasing Residential Investment Mortgage/Finance Asset/Portfolio Manager Managing Brokers/Owners Consultants/Exchange Facilitators Development Principals Corporate Executives Identify your specific profession and follow the guidelines Agenda • General Candidate Guidance Information • Portfolio Of Qualifying Experience • What Graders Look for in the Portfolio • Assembling Your Portfolio • Qualifying Activity Requirements • Qualifying Your Transactions • Frequently Asked Questions CANDIDATE TRACK Review CCIM Designation Requirements - Make the Decision – COMMIT! After taking their first CCIM course 85% of all students want to take another one CANDIDACY Institute Membership your Link to benefits, course discounts, information & more CI-101 This is the course that will change your life – Commercial Financial Analysis CANDIDATE GUIDANCE WORKSHOP Take one early to keep on the right track – Portfolio Information & More Take another one later – be clear on your path & requirements – you’ll be glad you did CI-102 This one makes demographics your trump card- Market Analysis for Commercial Real Estate CI-103 The user side of the coin – User Decision Analysis for Commercial Investment Real Estate CANDIDATE TRACK Review CCIM Designation Requirements - Make the Decision – COMMIT! CI-104 The Heart of the Matter – Investment Analysis for Commercial Investment Real Estate PORTFOLIO SUBMISSION Show off your Professional Experiences & CCIM skills CCR: COURSE CONCEPTS REVIEW Brush away the cobwebs before your knowledge is tested FINAL EXAM After a long walk - the Final Step THE PINNING = OPENING THE DOOR TO THE GOLD! Requirements for the CCIM Designation: • Become a candidate of the Institute. • Successfully complete all four core classes • Submit & have approved the Portfolio of Qualifying Experience You may submit your portfolio at any time but portfolio review sessions are only held twice a year • Complete the Course Concepts Review • Successfully pass the Comprehensive Exam. Registration for CCR and the Comprehensive Examination will only be accepted if the core class requirements are met, and the Portfolio has been approved by the Designation Committee. Students will not be admitted to the Exam unless ALL are completed • University Fast Track Candidates must submit a portfolio 2011 Candidate Guidance Schedule 2011 Candidate Guidance Schedule Portfolio Submission February 1 August 1 Deadlines Candidate Guidelines • Institute Candidate members who are pursuing the CCIM designation may NOT display the CCIM designation or logo in any manner, and may ONLY refer to their candidacy status in One Approved manner (below). • Institute candidates may ONLY refer to their candidate status “in a résumé to a prospective employer or broker”. • They may not use “CCIM” in any manner until AFTER they have successfully passed the final exam and been Approved by the Designation Committee and the CCIM Institute Board of Directors Misuse of the Designation, Logo, and Candidacy Status Misuse of the designation by candidates is strictly prohibited and subject to disciplinary action, including recourse by the Institute and the National Association of REALTORS® to state real estate licensing agencies in order to protect the integrity of the CCIM designation. All representations of candidacy status, except those approved by the Institute, are prohibited and subject to disciplinary action, including termination of membership. No mention of candidacy status may be made on business stationery, in advertising, brochures, contracts, documents, promotional materials, or any other printed matter or publications. They may not refer to themselves as a "CCIM candidate" or by any other means imply it. What is the Portfolio of Qualifying Experience? The Portfolio of qualifying experience is: • A standardized means for candidates to verify the quality of their work as commercial-investment professionals. • It documents the achievement of at least the minimum level of experience and skills required to qualify for the CCIM designation. When should you submit your portfolio? • Portfolios may be submitted at any point during candidacy following completion of CI-101 • The published portfolio deadline is the last date for which portfolios will be accepted to allow sufficient time prior to the Comprehensive Examination for review and grading. • You are strongly encouraged to start compiling your portfolio file once you complete CI-101. Where should you send your portfolio? Send portfolios to: CCIM Institute Attn: Samantha Carter 430 N. Michigan Avenue Suite 800 Chicago, IL 60611-4092 USA Who are the Graders? What do Graders Look For in Portfolios? • Graders are CCIM Designees who have successfully completed their portfolios and are proud of their CCIM pin. • Graders know the designation requirements and hold the CCIM Designation in high regard. • Typically graders are, or have been, members of the Designation Committee. • The graders look for a presentation that, in part, reflects the “quality” of your professional work that befits the CCIM designation. • Your Portfolio of Experience should be a clear and detailed presentation of YOUR work product. What Graders Look For Continued… • The first thing Graders review is the Portfolio Cover Sheet • It is important that you follow the assembly directions and use: – CCIM Portfolio Checklist – Summary of Qualifying Activities – Activity Data Form • These items are also used to insure you have supplied: – Proof of your qualified completed activity and – Two proofs of candidate’s role Assembling Your Portfolio Each portfolio submitted should contain the following: • Portfolio Summary Sheet • Portfolio Check List • Summary of Qualifying Activity • Activity Data Form • Settlement Documentation • Proof of Candidate’s Role It should be organized and presented in this order Assembling Your Portfolio: • The portfolio must be in one volume in an 8.5” x 11” format (legal size documents must be reduced), bound on the 11” side in either a 3 three-ring or spiral binder. Submittals in any other format or more than one volume will not be accepted. • Transactions or qualifying activities must be numbered in reverse chronological order (most recent as number 1, and so on), with each section separately tabbed. • It is suggested that the print size of narratives not exceed 12- point type. • Prepare two copies and keep one for yourself in case revisions are required. THE ORIGINAL WILL NOT BE RETURNED TO YOU Downloading Portfolio Files http://www.ccim.com/portfolio Activity Data Sheet • Read through the ENTIRE Activity Data Form before you get started • Fill out an Activity Data Form for EACH Activity you submit • We ask for the names of Supervisors, Managers, Managing Brokers, Clients, etc.. Please give complete current information. When Graders need information, they WILL be contacting these people. • Every Activity Must be Completed (Closed.) Activity Data Sheet (continued) • Explain in detail your Clients’ Goals & Objectives • Describe YOUR Job Duties and Role in this Activity (not your company job) • Completed: Closed data is the key to a Qualifying Activity • Value: Convert value of the transaction into US Dollars • Other Agents: List all other agents involved & explain how their job duties differed from yours. Settlement Documentation Include at least one of the following: BUT, If you have more than one, include it • Signed closing statement showing commission paid to your company • Copy of new deed showing date and new owner’s name • Signed lease with commission check to your company verifying the property address • Note: HIGHLIGHT & Explain Anything that ties back to you or your activity – Not just your Name! • Note: Provide in ENGLISH the title of the settlement documentation and highlight all signatures. Proof of Candidate’s Role Include at least two of the following: • Your signature on closing statement/contract/lease which declares you a principal, witness, agent, president, listing agent, selling agent, buyer/seller, lessee/lessor. This should connect you with the activity. • A copy of your commission check with property delineated on it. If you are paid a salary, provide your contract, job description or other verification. • A copy of the deed or official document showing you as grantee or grantor. • A notarized statement from your broker/supervisor/transaction principal on company letterhead verifying your exact role in the specific activity. • Signed Listing Agreement/Employment Contract. • Letters, e-mails from clients & cooperating brokers demonstrating your involvement during the transaction Proof of Candidate’s Role Continued… • NOTARIZED LETTERS to you from buyers, sellers, tenants, landlords, participating brokers, etc., on company letterhead verifying and specifying your exact role in the transaction and listing the property address. Or Provide this information on company letterhead with a certified company stamp • A SIGNED listing agreement with your name on it. • FULLY EXECUTED employment contract with proof of payment. • Principals/sole practitioners may supply a notarized statement from the settlement attorney or title company, or copies of legal documents that substantiate their position in the company. • Supervising brokers may submit a notarized statement from an officer in the company indicating that the nature of their employment involves material participation. • If you acted as a member of a team or in a supervisory capacity, additional documentation is required to prove your material participation. Explain your specific role in each transaction and your job responsibilities that were relevant to the completion of the transaction. What are Qualifying Activities? Qualifying Activities are defined as: Completed/closed Commercial Real Estate Transactions in which you materially participated within FIVE years of your Portfolio Submittal Date Note: Make sure that the closing statements have the date, volume, client, and property name and signature, translated into English. All these important items should be highlighted. Qualifying Activities • Active Managers of Commercial Investment Real Estate • Commercial Investment Real Estate Active Advisors • Commercial Real Estate Exchange/Acquisitions/Sales • Commercial Mortgage Financing of Commercial Real Estate • Commercial Real Estate Consulting • Commercial Real Estate Development • Commercial Investment Real Estate Lease • Qualifying Residential Investment Properties Qualifying Active Manager 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 commercial real estate transactions. • Supervising or Managing Brokers of commercial real estate transactions. Qualifying for Active Manager • Volume must be documented and verified along with documentation of material participation showing active management and involvement in each transaction. • Multiply the number of associates you manage by $5 million and then multiply the result by 75%. For Active Managers who manage 10 or more associates, candidates are to use 10 associates (maximum) as the number of associates in completing this calculation. • Minimum of 15 or more qualifying transactions equal to or greater than the dollar amount derived in (b) above • Substantiations of position and number of associates are required. • Complete Activity Data Sheet and Supply Settlement Documentation Qualifying Active Manager (continued) • Active Manager No. of Total (US$) 75% (US$) Associates 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 Qualifying Commercial Investment Real Estate Active Advisory Active Advisory category can include the following professions: • Exchange Facilitators • Accommodators • Tenant In Common Sales Representatives Commercial Investment Real Estate Active Advisory (Continued) Requirements: • A minimum of $500,000 in gross (commercial & investment) fees earned directly by the candidate and generated during the preceding five-year period from completed and qualified transactions as defined in the "Qualifying Activities Requirements" section. (Such fees must be paid directly to the candidate or candidate's company) • 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. Qualifying Exchange/Acquisitions/Sales • 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. 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. Qualifying Exchange/Acquisitions/Sales (Continued) • 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, other pertinent facts and proofs of all material participation. Qualifying Commercial Mortgage Financing of Commercial Real Estate • Qualifying activity: Closed first-position loans on qualifying commercial investment real estate property. • Volume: Determined by value of financing. • Substantiation: Copy of the signed loan documents, closing statements, and mortgage/deed of trust. 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. Qualifying Commercial Real Estate Consulting • Qualifying activity: Performance for a fee consultant relating to the transfer, leasing, or development of qualifying property where a complete consultant’s report, including 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: (1) copy of the complete consultant’s report, (2) commentary on course of action taken following consultation, (3) submittal of the employment agreement, and (4) copy of the paid bill for the consultation services. Qualifying 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. Qualifying 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. Submit only pages that include significant elements such as legal description of the property, agreed-upon lease amount (calculate this for total term if it is not clearly shown), relevant signatures, and any other pertinent pages that document your role, participation or are relevant to the transaction (Highlight all of these for clarity to the grader) Commercial Investment Real Estate Lease (Continued) • 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. Qualifying 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: Residential Investment (Continued) If you cannot supply all the documentation as listed, do not submit the residential transaction: • A property that is 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; 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. Residential Investment (Continued) 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. • Commercial Investment Rule: 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. • Commercial Investment Rule: 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. • Note: All residential leases are non-qualifying activities and are only used as a 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 i.e. residential land • Transactions/Activities 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 Other activities not listed here may not qualify. For questions on Qualification, please email firstname.lastname@example.org Required Contents for Volume • 1 or more activities totaling a minimum of $30 million. A 3-5 page narrative is required; OR • Exactly 10 qualifying activities that total $5 million or more; OR • 20 qualifying activities without regard to total volume PORTFOLIO SUBMISSION FACTS INTERNATIONAL PORTFOLIOS: For those who are not USA residents Portfolio Review: Each portfolio will be Reviewed by the Institute Designatio Department to confirm that it QUALIFIES for the GRADING SESSION If items are found lacking or the format does not conform with requirements you will be advised of a date by which revisions should be received to be eligible for grading Portfolio Grading: Although one portfolio grader is assigned primary responsibility for your portfolio, it is reviewed within a team of experienced CCIM designees to ensure objectivity and consistency Disapproved portfolios are also reviewed by the Designation Committee Usually, the grader emails you to see if deficiencies can be resolved at once Grading Results: Results of the grading session are mailed immediately. Don’t call or email unless you have not heard within one week of the grading session. Approval is Not Official until you receive a notice from the Institute Staff PORTFOLIO SUBMISSION FACTS (continued) • Appeals Process: If your portfolio is disapproved you may submit to a review board of 3 members (1 each from the Executive, Designations and Professional Standards Committee) • Portfolio Revisions: Revisions for Re-grading will be accepted within 30 days following notification of disapproval • Disqualification: Breach of these rules may result in disqualification of individual activities or the entire portfolio Duplicate portfolios/activities, in the case of partnerships or teams, will result in the disqualification of all related portfolios. Falsification of information will permanently disallow the entire portfolio • Confidentiality: Contents of the portfolios are kept confidential by the Institute. To guarantee the confidentiality of sensitive information and avoid conflicts of interest, graders do not review portfolios submitted from their own state or from candidates with whom they are familiar. Confidentiality Issues • Portfolio graders are obligated to verify the CCIM Candidate’s material participation in an activity as required by the CCIM Institute. An alternative activity must be chosen by the Candidate when client confidentiality in a transaction prohibits the disclosure of any or all of the required documentation as listed on the Designation Guidelines. • Yes, there is extra work involved in submitting your résumé to the CCIM Institute for portfolio review and grading when confidentiality is an issue. Confidentiality Issues (Continued) If there is an attorney/client privilege preventing disclosure, submit a different or alternate transaction if you are not able to provide adequate information for the grader to review. Otherwise, please go directly to the client/customer and request the client’s written permission for release of information that will remain confidential at the CCIM Institute. Explain that you are working on the prestigious CCIM Designation and that you must document your work experience in commercial real estate transactions. Notify your client/customer that the Portfolio of Qualifying Experience is highly confidential and destroyed after it is reviewed by the CCIM grader. If available, provide the engagement letter that includes the name of the client, property identification, the fee and type of work that was completed. Or create a document for the client or customer to sign verifying that you were directly involved in the transaction and that the client has given you permission to disclose particulars of the transaction. The client must have their signature notarized. 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. Questions About Qualifications Question: How do appraisers qualify? Answer: 1. Appraisers will only qualify when they earn the MAI designation. An MAI will be able to apply for the CCIM Designation through the CCIM Fast Track Program. 2. Assistant appraisers do not qualify. Question: How would commercial property managers qualify? Answer: A property manager can qualify in two ways: 1. If the person holds the CPM or RPA designation, he or she can apply through the Fast Track Program. 2. If commercial property managers (regardless if they hold the CPM and/or RPA designation) can document significant material involvement in the commercial leasing of or the sale/purchase/exchange of a qualifying commercial property, they may qualify. The volume would be based on the gross amount of the commercial lease or value of the transferred commercial real estate. See the sections on Commercial Investment Real Estate Lease and/or Sale/Purchase/Exchange for more details. Questions About Documentation Question: How do corporate officers document activities? Answer: A corporate officer could demonstrate involvement in the leasing or transfer of corporate real estate. He or she could submit an analysis viewed as a consulting report which they may have completed on the leasing or transfer of corporate real estate. He or she must substantiate primary involvement. Question: What do managers show as documentation? Answer: Show Copies of the signed leases or a copy of the consulting report along with an affidavit indicating the involvement of the candidate. (Verified letters from the client on original letterhead are good additional documentation) Questions about Transactions Question: If I were to represent the buyer and the seller on a transaction, would that count as one or two transactions? Answer: If a buyer and a seller were represented by the same person in the same transaction, that would count as one transaction (Rule of thumb: 1 settlement document/ 1 qualifying activity) Question: Do activities contained within the portfolio need to be commercial only? Answer: Activities may be commercial or residential investment but the latter must follow all criteria specified under the appropriate qualifying residential investment transactions and all proof must be supplied. Questions about Closing & Settlement Question: I am working on a development or consulting project but the transaction has not closed yet. May I submit the transaction? Answer: Only completed activities may be submitted even in the case of developments and consulting. Question: I cannot retrieve the settlement documentation. May I bypass that requirement? Answer: All activities require the settlement documentation to be submitted. Question about Qualifying an Activity Question: I cannot find a category that my work fits into. What should I do? Answer: As a standardized means of assessing that your experience qualifies for the designation, please follow the guidelines found under Qualifying Activity Requirements. 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 Frequently Asked Questions Question: How would Tenant In Common Sales Representatives Qualify? Answer: Tenant in Common Sales Representatives qualify under Active Advisory Question: I worked on a lot of deals that are confidential in nature and I cannot submit the required information for security reasons. What should I do? Answer: The documents that are required are mandatory in getting your portfolio approved. CCIM keeps contents of the portfolio confidential. To avoid conflicts of interest, graders do not review portfolios that are submitted from their own state. Furthermore, the documents are of great importance to the grader to generate a complete understanding of the activity in question. Things to Remember…… Clarify volume requirements Make sure that the dollar amount adds up to the transaction volume Provide US Dollar currency Provide US dollar amount on the Summary of Qualifying Activities and on each activity Provide proof of your role in Explain in complete detail your exact role or your individual role in the transaction/activity. complete detail Translation in the Closing Make sure that the closing statements have the date, volume and property name translated in English and Statements signatures and all pertinent information should be highlighted. Translation in the Provide in English the title of the settlement documentation and highlight all signatures and other Settlement documentation important facts. Notarized letters The Notarized letter should be on company letterhead and signed by the broker , supervisor , or client OR you can provide a certified letter with company stamp and signed by the supervisor or broker. Visit CCIM.com Visit: www.ccim.com/portfolio The Designation Requirements found on the CCIM Website always supersede what is written and distributed in the Designation Handbook or Portfolio Workshop PowerPoint. CCIM is here to help you! Questions About: Designation Requirements Portfolio Requirements Comprehensive Exam Should be directed to the Member Relations Manager Samantha Carter Phone: +(312) 321-4535 Email: email@example.com Thank you You are now ready to prepare your Portfolio of Qualifying Activities.
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