What You Will Learn :
- Calculate existing and stabilized net operating income,
- Determine debt service coverage, debt yield, and maximum supportable loan amount,
- Conduct a global financial assessment of the borrower and related parties.
- Evaluate a commercial real estate opportunity, including the project's management, ownership, market and property
Learn to use the Real Estate Lending Decision Strategy™ to assess investment real estate and construction loan transactions and the unique risks associated with them.
Instruction begins with an eight-module eLearning course that focuses first on the simple and complex real estate ownership structures that lenders may encounter, and then on the types of properties that may serve as collateral in commercial real estate deals.
As particpants study primary and secondary repayment sources, they also learn how to:
Calculate existing and stabilized net operating income,
Determine debt service coverage, debt yield, and maximum supportable loan amount,
Determine value and loan-to-value based on market conditions and a property’s net operating income, and
Conduct a global financial assessment of the borrower and related parties.
Once they’ve completed their study of loan analysis, participants leanr how to properly document and manage a commercial real estate loan. After participants successfully complete the eLearning course they’re eligible to attend the Commercial Real Estate Lending: Skills Application Lab to practice and reinforce skills learned during eLearning.
Upon completion, participants will be able to:
Evaluate a commercial real estate opportunity, including the project’s management, ownership, market and property
Calculate and evaluate cash flow, net operating income, and debt service coverage
Determine the value of a commercial real estate property as a secondary source of repaymnet
Identify the appropriate loan documentation needed for different types of real estate transactions
Recognize the steps necessary to properly monitor a construction loan
Who is this course for?
Anyone with commercial real estate lending responsibilities, including commercial real estate lenders, commercial lenders, credit managers, credit underwriters, and loan review staff.