As a student of the game I pride myself on utilizing every opportunity available to me. So, when a fellow NYU student approached me to see if I was interested in taking an Argus certification class, I jumped at the opportunity. Argus Valuation DCF is the industry standard commercial real estate cash flow projections, transaction analysis, and asset valuation tool. It’s used by all the major CRE companies and can save you a lot of time when doing cumbersome analyzes.
The certification course offers a discounted student rate. If you can organize a group of 15 or more students, the course itself will run you about $550 each. This includes 10 e-learning modules with case-study exercises, a 1-day instructor led class, test, and 130 day access to a training copy of Argus. The class is taught by an Argus employee and upon the successful completion of the course, you will receive an official Argus certification.
If you decide to take the Argus certification course, I highly recommend that you complete and understand the e-learning modules and have a thorough grasp of the software prior to the 1-day course. The 1-day course moves quickly and in order to get anything out of it you must know the basics. Think of it like learning to swing a bat and throw a ball before showing up at spring training.
The analogy aside, here is an outline of the exam including length of the exam and questions to expect:
Disclaimer: Having taken the exam, this is simply my opinion of the layout and question distribution of the exam. I cannot guarantee that this is accurate or that future exams will have the same format.
ASC Exam Review
Part 1: 90 Minutes – 75 Questions (70%) (T/F, Multiple Choice Questions)
1) MLA (10-12 questions)
a) Calculate Market Rent
b) Understand Upon Expiration field
2) Operating Expenses and Misc. Revenues (10-12 questions)
a) Calculate expenses based on graphics
b) Know % fixed, Reference Account, % of Line function
c) Entry methods for expenses
3) Tenant Rent Roll (12-15 questions)
a) Compute Base Rent, Step Rent, CPI etc.
b) Understand and calculate Rent Abatement, Leasing commission
c) Formatting of Lease start date and end date
d) Calculate absorption & Turnover vacancy
4) Reimbursements (10 questions)
a) Understand different reimbursement methods
b) Calculate recovery based on screenshot
c) Understand gross up function
5) Yield menu (8-10 questions)
a) Understand and calculate resale value
b) Understand debt financing window
c) Understand advanced yield menu
d) Understand waterfall distribution (partnership)
6) Misc. Section (7-8 questions)
a) Random ARGUS facts
b) Formulas (LC, GV, etc.)
7) Reports (4-5 questions)
Part 2: 90 Minutes – 15 Questions (30%) (T/F, Multiple Choice Questions)
1) 15 questions based off a case-study you must complete from
……. scratch
How to Prepare For The Exam
The first part of the exam consists of 75 multiple choice questions. Many of these questions are very similar to, or are even pulled directly from the quiz’s that are given throughout the e-learning modules. When I went through the e-learning modules, I took a screen-shot of the questions I struggled with, put them into a word document, and reviewed them prior to the exam. The questions range from simple real estate calculations to questions about the Argus software.
The second portion of the exam consists of a single case study. The best way to prepare for this portion of the exam is to simply go through and complete all the case studies provided in the student package. The only way you’re really going to learn the software is by getting in the trenches, using trial and error, and messing around with the program until you feel comfortable. With the class comes 3-4 case studies that you can work on in your spare time.
Here are the answers to a few of the case studies. In order to open the case studies, you must have a version of Argus DCF Software installed on your computer.
I want to note that I write this post not knowing if I passed the exam. Students who don’t pass the first time will be able to retake the exam for $50. Either way, if you’re considering the certification exam feel free to post any additional questions you may have in the comment section below. Also, if you’ve taken the exam, I’d like to hear your thoughts.
*I have since passed the exam. I recommend that you occasionally go back through the case studies to keep your skills sharp.
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