Commercial Investment Real Estate is the magazine of the CCIM Institute, the leading provider of commercial real estate education. CIRE covers market trends, current developments, and business strategies within the commercial real estate field.
Issue link: http://cire.epubxp.com/i/92705
As a couple of young real estate agents in the then-microscopic market of Sierra Vista, Ariz., Aytan A. Dove, CCIM, of Aytan Dove Appraisal Co. in Dover, Pa., and his broker- age partner drove nearly 10 hours to attend CI 101 in Las Vegas in 1976. The course turned out to be one of the best investments of Dove's career. "On the drive back home, we developed a plan to expand our one-story offi ce building, which would make it fi nancially feasible to expand our real estate business," says Dove, who achieved the designation in 1979. "With just the knowledge from that one course, we demonstrated to the building's owner — and fort with risk and being able to demonstrate how various factors such as interest rates, vacancy, and capital improvements impact return on investment was critical," says White, who was pinned in 1982. Gaining a practical understanding of discounted cash fl ow analysis has been one of the most critical elements for Warren Klutz, CCIM, MAI, of Warren Klutz & Co. in Bristol, Tenn., who also holds an MBA. "I was told by an individual who had com- pleted the CCIM course work and obtained an MBA that I would be wasting my time earning the MBA," says Klutz, who earned the designation in 1981. "I now speak from tion with instructors and students combined represents the value to me." MILESTONES IN CCIM EDUCATION 1969 CCIM Institute is founded and confers the designation to 300 designees. 1972 CCIM education and training expands with national instructor auditions and training sessions. 1982 CCIM launches peer-reviewed scholarly publication, Commercial Investment Journal, which is now the award-winning Commercial Investment Real Estate magazine. 1992 CI 101 is taught in Russia, marking the international expansion of CCIM education. 2007 CCIM establishes the Ward Center for Real Estate Studies to provide timely education on current industry topics and trends. 2010 CCIM's core curriculum is rewritten to infuse new case studies and concepts refl ective of the current commercial real estate market. Game-Changing Principles Aſt er acquiring the fundamentals, many CCIMs cited the Institute's instruc- tion related to tax and 1031 tax-deferred exchanges as pillars of their education. "CI 101 got me into the business, but CI 103 [User Decision Analysis] helped me stay in the business," says Steve Cannariato, CCIM, of Hawkins & Cannariato, in Boise, Idaho, who earned the designation in 1982. "As my career developed, I found myself primar- ily helping users of commercial real estate make occupancy decisions, which is the essence of 103. I still use CI 103 concepts and skills just about every working day." T e 57th member to earn the designa- tion, Sheldon F. Good, CCIM, of Good Realty Group in Chicago, says the tax-related investment and law concepts have been the most important take-away throughout his 50-plus-year career. "The effects of taxes on property ownership and investments, depreciation, tax-deferred exchanges" made Good's deals newsworthy and helped him land other assignments, he says. "I have completed many transactions because of my extensive tax knowledge," Good adds. Taxation principles and 1031 exchanges the bank — how we could expand the offi ce, acquire tenants, and establish rents. We accomplished our goal in just eight months because 101 showed us how to research the market and project income and expenses. I continue to use this process every day in my appraisal work." Similar to Dove's experience, learning the basics of income and expense analysis elevated many CCIMs to the next level. "I learned to evaluate investment properties with diff erent cash fl ows and risk factors," says Robert B. White, CCIM, senior vice president of Lee & Associates in Fort Myers, Fla. "Fully understanding your clients' com- 40 November | December | 2012 my own experience. Anyone who wants to acquire the skills they need to be successful in commercial real estate should go through the CCIM program." While many designees concur that CI 101 served as the most important foundational piece, some pointed out that the value of the CCIM education's sum outweighs its parts. "T e total experience was more valuable than any one course," says J. Rudy Henley, CCIM, of WV Commercial in Charleston, W.Va., who earned the pin in 1980. "T e instruc- tion related to the projection of income and expenses, aſt er-tax cash fl ow, valuation related to discounted cash fl ow and interac- have also had the biggest impact on Albert S.P. Wong's career. "Many investors have rejected opportunities because they did not realize that the tax refunds create a positive cash fl ow," says Wong, of Palace Realty in Honolulu, who earned his pin in 1973. As a broker in Hawaii in the 1970s, Wong's tax- deferred exchange experience gave him a dis- tinct advantage since accountants, attorneys, and other real estate professionals were not well-versed in these complex transactions. "Real estate in Hawaii can have great returns from appreciation, but in order to improve the asset we used the cash fl ow statement to introduce the 1031 concept." Mark Lee Levine, CCIM, professor and former director of the University of Denver's Burns School, also cites CCIM's tax plan- ning tools, including installment sales, 1031 exchanges, and accelerated depreciation, as some of the most valuable assets of the pro- Commercial Investment Real Estate