Beware of Cyber Fraud in Real Estate

Fraud is a nasty part of life in a lot of ways. We have all learned to be careful and to watch for it. Unfortunately, the crooks and bad guys know we're watching and they constantly evolve their game to try to stay ahead of our efforts.

Now, they have worked their way into the real estate market in a way that requires caution on our part. The Georgia Association of Realtors recently sent out the following warning to its members, asking us to spread the word:

"Beware of Cyber Fraud

"Fake e-mails attempting to get you to wire money to criminal computer hackers are increasingly common in real estate transactions.

"Under this scam, computer hackers fraudulently assume the online identity of the actual mortgage lender, closing attorney and/or real estate broker with whom you are working in the real estate transaction. Posing as a legitimate company, they then direct you to wire money to them. In many cases, the fake e-mail is sent from what appears to be the authentic web page of the legitimate company responsible for sending the wiring instructions.

"You should use great caution in wiring funds based solely on wiring instructions sent to you by e-mail. Independently verifying the wiring instructions with someone from the company sending them is the best way to prevent fraud. In particular, you should treat as highly suspect any follow up e-mails you receive from a mortgage lender, closing attorney and/or real estate broker directing you to wire funds to a revised account number.

"Never verify wiring instructions by calling a telephone number provided along with a second set of wiring instructions since you may end up receiving a fake verification from the computer hackers trying to steal your money. Independently look up the telephone number of the company who is supposed to be sending you the wiring instructions to make sure you have the right one."

It only takes a moment to verify.  But it is a moment that could save a lot of money, hassle and heartache.

What's that CCIM thing?

If you are involved in any way in commercial real estate, you may have seen the term CCIM following somebody’s name. So, what does that mean?

CCIM stands for Certified Commercial Investment Member. It is a designation awarded by the CCIM Institute, which traces its history to 1959. The current designation was first established in 1969.

The focus of the CCIM Institute is to foster a worldwide group of commercial real estate professionals equipped with tools, resources and education centered on analyzing commercial real estate from a financial investment standpoint. Candidates for the CCIM designation take multiple courses in core competencies taught by industry professionals. The heart of the program revolves around four courses.

o   Financial Analysis for Commercial Investment Real Estate introduces the CCIM candidate to the CCIM cash flow model. Subjects include internal rate of return, net present value, capitalization rate and capital accumulation.

o   Market Analysis for Commercial Investment Real Estate. This course focuses on analyzing the market in which a property is located along with the property’s financial attributes. Demographics and geospatial tools are incorporated in the process to make a go or no-go decision.

o   User Decision Analysis for Commercial Investment Real Estate.  This course takes the perspective of a user or occupant of commercial real estate and uses market and financial analysis skills for user space decisions.

o   Investment Analysis for Commercial Investment Real Estate. Case-study driven, this is the capstone course in the CCIM education process. Integrating all the previous courses as well as communications and negotiations models, this course looks at key decisions in the life of a commercial real estate investment from acquisition through holding to disposition.

In addition to the above, CCIM candidates take courses in ethics, negotiations and other electives. Candidates are then required to submit a portfolio of their qualifying activities or transactions to demonstrate their experience in commercial real estate. The typical CCIM candidate submits a portfolio documenting ten transactions with a total volume of $10 million or more.

The final step in earning the CCIM designation is a full day exam that tests the candidate’s mastery of all the concepts included in the above courses.

The next time you see someone wearing a CCIM pin, you’ll know they not only have significant experience in commercial real estate but have spent upwards of 150 hours in classroom study to become a master of their profession.