Real Estate Lending Academy

Past Event

Real Estate Lending Academy

This three day course explores both qualitative issues and traditional quantitative analysis.

Course Overview:
This intermediate-level three-day course helps participants understand the key elements of credit decisions involving real estate by describing the characteristics of income-property real estate loans and identifying the key loan underwriting differences between investor loans, owner-occupied real estate loans, and commercial loans secured by real estate.

This course explores qualitative issues, including industry, business, and management strategy, coupling these issues with the traditional quantitative analysis, including income statement, balance sheet, and cash flow analysis.

Who will benefit?
The course is for commercial lenders and credit analysts who are not real estate specialists but who need to know more about assessing real estate risk.

You will:

• Review classic credit “best practices.”
• Learn how to link the loan purpose with the repayment source.
• Find out why there should be at least two sources of repayment, and why the first is typically based on cash flows.
• Come to understand the importance of the borrower/sponsor having a stake in the deal.
• Find out about the pros and cons of loans secured by income-producing property, loans secured by owner- occupied property, and commercial loans secured by real estate.
• Discuss real estate risk relative to apartments, retail space, warehouse, and industrial property.
• Hear about discounted cash flow, sensitivity analysis, volatility, regulatory issues, lease analysis, documentation, and environmental risk.