Ohio CCIM Chapter Newsletter | Fourth Quarter 2021

NEWSLETTER

Fourth Quarter 2021

President's Message

The push is on…time to start planning for next year and finish this year out strong! Last month, the board met for our annual strategic planning meeting. It was facilitated by your new incoming president, Todd Spencer of Lee & Associates, Columbus. Todd has fresh energy and good ideas he plans on implementing. I am looking forward to Todd’s leadership and, assure you, the chapter will be in good hands.

Our first and only in person 101 class this year will be held in Columbus, December 7^th – 10^th. You still have time to register. It might also be a good time to take it as a re-fresher class just to knock the rust off. We will be having a general membership meeting along with a meet and greet after class on the 7^th starting around 5:00 p.m. at NAI Ohio Equities, 605 S. Front Street, Suite 200, Columbus, OH 43215. Please join us to show your support to the class participants and for some good networking and catching up before the end of the holidays.

Year end is also a good time to consider becoming a sponsor for the Ohio Chapter. Please be sure to check out the sponsors below and show your support to the chapter by working with one of them or consider becoming one yourself. It is also a good time to get your CCIM Institute and local dues paid and checked off the year end to due list.

Thank you all for your continued support and I wish you a very Happy Holiday season and a prosperous New Year! Hope to see you all soon.

Make it a great day,

Steve Masica

2021 Ohio CCIM Chapter President

Sponsor Spotlight

I Thought “ACCORD” was Just a French Word for “OK”

By: Leslie A. Biskner, CCIM

Executive Vice President,

Commercial Lending Group

Director of Marketing

Cooperative Business Services, LLC

Your Business Lending Partner ^TM

What is an ACORD 28 and why does your lender need it?

When our credit unions (or any lender) are extending a commercial real estate secured loan, we require evidence that the borrower has properly insured the building and other improvements against the loss by fire or other casualties. CBS, LLC in this case, as a credit union commercial lending cooperative, wants to be sure the business has an ACORD 28 Evidence of Commercial Property Insurance because the large amount of loans that we close, and service, makes it hard for our team to read through every single policy, which can be 100’s of pages long each!

Our credit unions view the insurance coverage as a material part of the overall security for the loan. We rely upon the certificate of insurance issued on forms promulgated by the Association for Cooperative Operations Research and Development, i.e., the ACORD.

So mes amies, what does the ACORD do?

It provides us with acceptable proof that the specified insurance coverage is in effect as of the date of issuance, typically, just before closing the new loan.
It shows us that the borrower has in force, the types of insurance required.
It confirms the lender/credit union has an insurable interest in the real estate.
It lists the lender as mortgagee or lender’s loss payee (as applicable) on the policy.
And lastly, as we monitor the loan over the years, if for whatever reason the insurance is not paid, or renewed, the insurance company will send us at least a 30-day written notice of any policy cancellation.

At the top of every ACORD 28 Evidence of Commercial Property Insurance, the following disclaimer is printed:

THIS EVIDENCE OF COMMERCIAL PROPERTY INSURANCE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE ADDITIONAL INTEREST NAMED BELOW. THIS EVIDENCE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS EVIDENCE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE ADDITIONAL INTEREST.

This is on the form to illustrate the ACORD 28 only offers information about the coverage in place - and nothing beyond. So, to gain the benefits of the certain rights and coverage extensions, our credit unions and us, as lenders and servicers, must ensure that proper endorsements are issued and attached to the underlying policy.

There are many interested parties who may require your business and real estate have adequate insurance protection. The ACORD 28, Evidence of Commercial Property Insurance, will provide a coverage statement for mortgagees, additional insureds, and loss payees who provide mortgages or loans on real property or business personal property insured under a commercial insurance policy and are named in the policy. Comprendre? J’espere qui ca t’as aide.

Chapter Involvement

Interested in getting involved with the Ohio CCIM Chapter? Please reach out to Andrew Barr at Andrew@cc-realty.com for more information.

Candidate's Corner

Important Dates for Candidates:

Spring 2022 | The Westin Charlotte

• Portfolio Due Date: Jan. 14, 2022

• Exam Registration Deadline: Mar. 11, 2022

• Course Concepts Review (CCR): April 9-10, 2022

• Comprehensive Exam: April 11, 2022

Fall 2022 | Sheraton Grand Chicago

• Portfolio Due Date: July 29, 2022

• Exam Registration Deadline: Sept. 9, 2022

• Course Concepts Review (CCR): Oct. 13-14, 2022

• Comprehensive Exam: Oct. 15, 2022

Upcoming Events

December 7, 2021 – Networking | Columbus, OH (Register)

CCIM Members are invited to join the CI101 participants for a post-class happy hour and chapter networking event, hosted by the Ohio CCIM Chapter and NAI Ohio Equities, 605 South Front Street, Suite 200, Columbus, OH 43215 | 5 – 7 p.m.

December 7-10, 2021 – CI-101: Financial Analysis for Commercial Investment Real Estate | Columbus, OH (Details)

CI 101 is a bedrock class for real estate practitioners at a time when risk mitigation, pricing, and cycle assurance have become critical to investors. CI 101 introduces the CCIM Cash Flow Model, a tool for ensuring your investment decisions are based on wise finance fundamentals. During the course, you will learn how to use key financial concepts such as Internal Rate of Return (IRR), Net Present Value (NPV), Cap Rate, Capital Accumulation, and the Annual Growth Rate of Capital to compare different types of commercial real estate investments.

For up-to-date information and registration links visit ccimconnect.com/ccimohio.

Technology Corner

Did you know that there is a whole library of webinars and industry reports available to members via the CCIM website? These include recent economic updates, real estate outlooks and a library of reports from noted expert Glenn Mueller.

From the CCIM home page, click on the 'Members Only' menu item (you will be prompted to enter your username and password). Then simply scroll down to the link titled 'Webinars and Reports'. New content is continually added so be sure to check this often!